Preheat your oven to 350°F (180°C) and line a muffin tin with paper liners.
In a medium bowl, whisk together the flour, baking powder, and salt.
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 to the butter mixture, alternating with the dry ingredients, mixing until just combined. Do not overmix.
Divide the batter in half. Add the blue food coloring to one half and mix thoroughly.
Spoon the white and blue batter alternately into the prepared muffin liners, creating a marbled effect.
Bake for 18-20 minutes, or until a toothpick inserted into the center comes out clean.
While the cupcakes are baking, prepare the frosting: beat the cream cheese and powdered sugar together until smooth. Gradually add the heavy cream and mix until light and fluffy.
Let the cupcakes cool completely before frosting. Decorate with the cream cheese frosting and, optionally, blue and white sprinkles or sugar decorations.
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