Preheat your oven to 350°F. Line a 12-cup muffin tin with paper liners.

Whisk together flour, baking powder, and salt in a medium bowl. Set aside.

In a large bowl, cream the softened butter and brown sugar together until light and fluffy.

Add eggs one at a time, beating well after each addition. Then mix in vanilla extract and butter extract.

Alternately add the dry ingredients and cream soda to the butter mixture, beginning and ending with dry ingredients.

Fold in the butterscotch sauce with a spatula.

Divide batter evenly among the prepared muffin cups, filling each about two-thirds full. Bake for 18-20 minutes.

Cool cupcakes in the pan for 5 minutes, then transfer to a wire rack to cool completely before frosting.

For the frosting, beat cream cheese and butter together until smooth and creamy. Gradually add powdered sugar, then mix in butterscotch sauce, heavy cream, and vanilla.

Pipe or spread frosting generously onto cooled cupcakes. Drizzle with additional butterscotch sauce.