Preheat oven to 350°F. Line 18 muffin cups with paper liners.

In food processor, pulse CHEETOS^® Crunchy FLAMIN’ HOT^® Cheese Flavored Snacks until finely ground to make 1 ¾ cups; transfer to medium bowl and set aside.

In small bowl, whisk together flour, baking powder and salt.

In large bowl, using handheld electric mixer, beat together sugar and butter until light and fluffy, about 4 minutes. Beat in eggs, one at a time, incorporating the first fully before adding the second. Beat in vanilla.

With mixer on low speed, alternately add flour mixture and milk, making 3 additions of flour mixture and 2 of milk, and scraping bowl as needed between additions, until blended. Spoon batter into muffin cups, filling about two-thirds full.

Bake for 20 to 25 minutes or until a tester comes out clean when inserted into center of a cupcake. Let cool completely in pan on wire rack.

Frosting: In clean food processor, pulse cream cheese and cheddar cheese until blended and smooth. Add butter and pulse until blended, about 1 minute. Add confectioners’ sugar and vanilla; mix until light and fluffy. (If frosting is too soft, chill in refrigerator for 10 to 15 minutes.)

Assembly: Using paring knife, without cutting all the way to bottom or sides of cupcakes, cut out 1-inch well from top of each cupcake, reserving cut-out portions for another use.

Fill each well with 1 tbsp crushed CHEETOS^®; press with back of spoon to pack tightly.

Spoon or pipe frosting over cupcakes. Sprinkle with remaining crushed CHEETOS^®.