Preheat the oven to 160°C (320°F) and prepare the muffin pan with liners.
Melt the cream cheese and butter together in a heatproof bowl over simmering water.
In a separate bowl, whisk the eggs and sugar until pale and fluffy.
Add the melted cream cheese mixture and milk to the egg mixture, stirring to combine.
Sift together the flour, baking powder, and salt, then fold it into the wet ingredients.
Divide the batter evenly among the prepared muffin cups, filling each about 2/3 full.
Bake for 18–20 minutes or until the tops are golden and a toothpick comes out clean.
Let the cupcakes cool in the pan for 10 minutes before transferring to a wire rack.
Serve the cupcakes once cooled, optionally dusting with powdered sugar or serving with whipped cream.