Preheat oven and make cake mix to directions on the back of the box. Leaving about 1 tablespoon of the dry cake mix in the bag. Put cinnamon chips in the bag with the dry cake mix. Mix until chips are coated. This helps to evenly distribute chips in the batter, otherwise they might all fall to the bottom of the cupcakes when baking. Add cinnamon chips to the batter and stir with spoon to combine.
Fill cupcake liners per directions on the back of box. Bake per directions. Let cupcakes cool on wire rack in cupcake tin for about 5 minutes. Take out of cupcakes tin and let cool on wire rack until easily handled.
Mix the granulated sugar and 1/2 tablespoon cinnamon in a bowl, set aside. Using the softened butter that will make the frosting, take a brush and brush the tops of the cupcakes with the butter. Not a lot, just enough to moisten the tops like in the picture. Dip cupcake tops into the cinnamon sugar mixture. Let cupcakes cool completely.
Make frosting while cupcakes cool. Mix the cream cheese and butter with hand mixer until smooth. Add in the cinnamon and vanilla, mix to combine. Add in the powdered sugar 1/2 Cup at a time until full incorporated. Set aside until ready to frost.
Top cupcakes with frosting, sprinkle with cinnamon sugar mixture and sprinkles if desired. Serve and enjoy!