Preheat your oven to 350°F (180°C). Line a muffin tin with paper liners.
In a bowl, whisk together the flour, baking powder, salt, and ground pistachios.
In a separate bowl, cream together the softened butter and sugar until light and fluffy. Beat in the eggs one at a time, then stir in the vanilla extract.
Gradually add the milk and pistachio paste to the butter mixture, alternating with the dry ingredients, beginning and ending with the dry ingredients.
Mix until just combined. Do not overmix. Fill the muffin liners about ¾ full.
Bake for 18-20 minutes, or until a toothpick inserted into the center comes out clean.
While the cupcakes are baking, prepare the frosting: In a bowl, beat the cream cheese and powdered sugar until smooth. Gradually add the heavy cream and pistachio paste, and beat until light and fluffy.
Let the cupcakes cool completely before frosting. Decorate with the pistachio frosting and sprinkle with chopped pistachios.
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