Mexican Hot Chocolate Cupcakes

If anyone is planning on making this soon, I have a whole batch of the frosting you can have. The recipe makes A LOT. I made a double batch of the cupcakes so I made a double batch of the frosting too. Well, a single batch of the frosting would have probably been too much too. (I added this comment on 4/28)

I just tried this recipe for the lunch bunch at Sarah's (although I didn't make it) and it was sooooo good! I couldn't believe how good it was!! It will definitely be made again in my house. For the frosting, I didn'thave chili powder at first, so I left it out and the frosting was still way good. So, if you don't have chili powder, don't worry. (From foodnetwork.com)

Cupcakes:
1/2 cup milk chocolate chips
1 cup (2 sticks) unsalted butter
1 teaspoon vanilla extract
1 cup sugar
3 large eggs
3/4 cup all-purpose flour
1/3 cup unsweetened cocoa powder
1 teaspoon baking powder
1/8 teaspoon salt
12 peanut butter cups

Mexican Hot Chocolate Frosting:
1 (8-ounce) package cream cheese, at room temperature
1/2 cup (1 stick) unsalted butter, at room temperature
1 teaspoon chili powder
1/2 teaspoon ground cinnamon
1/4 teaspoon salt
1 teaspoon vanilla extract
3 cups confectioners' sugar, sifted
3 ounces unsweetened chocolate, melted

Preheat the oven to 350 degrees F. Line a standard cupcake pan with liners.
To prepare the cupcake batter: In a large heat resistant bowl, combine the chocolate and butter over a pot of simmering water, without letting the bottom touch the water. Stir gently until melted and well combined. You may use a microwave, if preferable.

Remove chocolate from heat and stir in the vanilla. Add the sugar. Beat with a handheld electric mixture until smooth and combined, about 3 minutes. Add the eggs, 1 at a time, mixing for 20 seconds between each egg to incorporate.
In a separate bowl, sift together the flour, cocoa powder, baking powder, and salt. Mix until well blended.

Using ladle or small measuring cup, fill the cupcake cups 2/3 of the way full. Place a peanut butter cup in the center of each cup and press down slightly. Bake until the cupcakes are firm to the touch about 20 minutes.

To prepare the frosting: Using a handheld electric beater, cream the cream cheese and butter together thoroughly. Add the chili power and cinnamon, mixing to incorporate. Add the salt, vanilla, and confectioners' sugar. Finally, mix in the melted chocolate and blend thoroughly until smooth. If additional thickening is needed, add more sifted confectioners' sugar, a little at a time, until a spreadable consistency is reached.