Preheat your oven to 320°F (160°C) and prepare your muffin tin with cupcake liners.

In a large mixing bowl, combine softened cream cheese and granulated sugar. Blend until smooth and creamy, about 2-3 minutes. Add the milk, egg yolks, and vanilla extract, mixing until fully incorporated.

Sift together the all-purpose flour and cornstarch into the cream cheese mixture. Gently fold these dry ingredients into the batter using a spatula.

In a clean bowl, beat the egg whites until soft peaks form, then gradually add granulated sugar until stiff peaks are achieved.

Fold one-third of the whipped egg whites into the cream cheese batter, then gradually add the remaining whipped egg whites.

Fill the cupcake liners about 2/3 full with the batter.

Bake for about 30 minutes or until the tops are lightly golden and have a slight jiggle.

Remove the cupcakes from the oven and cool in the tin for about 10-15 minutes, then transfer to a wire rack. Dust with powdered sugar before serving.