Preheat oven to 350°F (180°C) and line a muffin tin with paper liners.
In a medium bowl, whisk together the flour, baking powder, salt, and ground coffee.
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 espresso to the butter mixture, alternating with the dry ingredients. Begin and end with the dry ingredients.
Mix until just combined. 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 together the cream cheese and powdered sugar until smooth. Add the espresso and heavy cream, and mix until creamy.
Let the cupcakes cool completely before frosting. Decorate with the vanilla coffee frosting and top each cupcake with a coffee bean.
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