Line a muffin pan with cupcake liners. Preheat oven to 350 F.

Beat the butter and sugar together in a bowl of a stand mixer until fluffy while scraping the sides of the bowl if necessary

Add in the eggs one at a time, beating well after each addition.

Combine the flour and baking powder in a bowl. With the mixer still running, add ⅓ of the flour mixture and mix until combined. Add half of the condensed milk and continue mixing. Add another third of the flour, followed by the remaining half of the milk and finish by adding the last third of the flour.

Fold in ½ cup of grated cheddar cheese into the batter using a rubber spatula.

Spoon batter into the cupcake liners until the liners are about ¾ full. Top each cupcake with the remaining cheddar cheese. Bake in the oven for 20-22 minutes or until the tops are nicely golden and a toothpick inserted at the center of a cupcake comes out clean.

Let cool and store leftovers in a covered container at room temperature.