Creating Fluffy Japanese Cotton Cheesecake Cupcakes can be simple if you follow these easy steps:

1. Preheat Oven: Preheat your oven to 320°F (160°C). Prepare a muffin tin by lining it with cupcake liners.
2. Mix Cream Cheese: In a large bowl, combine the softened cream cheese, granulated sugar, and milk. Mix until smooth and creamy.
3. Add Egg Yolks: Add the egg yolks, one at a time, and vanilla extract to the cream cheese mixture. Blend until well combined.
4. Incorporate Dry Ingredients: Sift the flour, cornstarch, and salt into the cream cheese mixture. Mix until just combined, ensuring there are no lumps.
5. Whip Egg Whites: In a separate bowl, whip the egg whites until stiff peaks form. This will help create the fluffy texture of the cupcakes.
6. Fold Mixtures Together: Gently fold the whipped egg whites into the cream cheese batter. Be careful not to deflate the mixture; it should remain airy.
7. Fill Muffin Tin: Pour the batter evenly into the prepared cupcake liners, filling each about 2/3 full.
8. Bake: Place the muffin tin in the preheated oven and bake for 25-30 minutes or until the tops are lightly golden and a toothpick inserted comes out clean.
9. Cool the Cupcakes: Once baked, remove them from the oven and let them cool in the tin for about 10 minutes. Then, transfer them to a wire rack to cool completely.
10. Dust with Powdered Sugar: Before serving, dust the tops with powdered sugar for an elegant touch.

These straightforward steps will guide you in creating these incredible cupcakes effortlessly.