Set your oven to 350°F (175°C) and prepare a 12-cup muffin tin by lining each well with a paper liner. A light spray of non-stick spray can help cupcakes release easily later.
Combine the flour, cocoa powder, baking powder, baking soda, and salt in a big bowl, whisking them together until well blended. Make sure the cocoa is lump-free so your batter stays silky and smooth.
In a separate bowl, whisk the egg, milk, vegetable oil, and vanilla until everything is blended and glossy. Don’t worry if it looks a little loose, it will all come together when folded into the dry mix.
Add the wet ingredients to the dry and gently fold until smooth. The batter may seem thick or a bit stubborn at first, that’s normal. Use a spatula to scrape the sides and fold carefully.
Dissolve the instant espresso powder in boiling water and slowly whisk it into the batter. You won’t taste coffee, but it brings the chocolate flavor to life. Pour gently and stir lightly to keep it smooth.
Scoop the batter into the lined pan, filling each about two-thirds full. Bake for 16–18 minutes. Check at 16 minutes with a toothpick, it should come out clean or with a few crumbs.
Let the cupcakes cool in the pan for about 10 minutes before moving them to a wire rack to cool completely. This is the perfect time to make your frosting and caramel sauce.
For the frosting, beat the softened butter until creamy, then add cocoa powder, half the powdered sugar, and a splash of heavy cream. Mix slowly at first to avoid sugar clouds, then gradually add the rest of the powdered sugar and cream until soft, smooth, and pipeable. Give it a taste and fine-tune the sweetness or texture until it suits your preference.
To make the caramel sauce, put the granulated sugar in a dry saucepan over medium heat and stir gently until it melts into a golden caramel. Take it off the heat and whisk in the butter carefully, it’ll sizzle! Slowly pour in the cream while whisking, then cook for another minute or so until smooth. Stir in vanilla and let it cool slightly until thick and luscious.
Pipe a thick circle of chocolate frosting on each cooled cupcake, leaving a little hollow in the center, this is your “caramel nest.” Make it generous enough to hold the caramel without spilling.
Spoon a small amount of caramel into the frosting circle, let the frosting set a bit, and then enjoy, every bite is soft chocolate, creamy frosting, and a sweet-and-salty caramel surprise!