Preheat your oven to 350°F (175°C) and line a cupcake tin with paper liners.

Cream together the softened butter and sugar until smooth and creamy, about 2-3 minutes.

Add in the eggs and vanilla extract, mixing until fully combined, for about 1-2 minutes.

In a separate bowl, whisk together the flour, baking soda, baking powder, and salt. Gradually blend this into the butter mixture, alternating with buttermilk.

In a small bowl, mix together the brown sugar and cinnamon, then blend in the chopped nuts if using.

Layer the cupcake batter and cinnamon filling in each paper liner, starting with batter, then filling, and topping with more batter.

Bake for 18-20 minutes, testing for doneness with a toothpick. Cool in the pan for 5 minutes before transferring to a wire rack.

Beat together the cream cheese and butter until smooth, then gradually add powdered sugar. Stir in vanilla and adjust with milk for consistency.

Once cooled, frost the cupcakes and optionally drizzle with caramel sauce.