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To make cupcakes:
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Preheat oven to 350F. Line muffin tin cups with paper cupcake liners.
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Sift flour, baking powder and salt into a medium bowl and set aside.
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In a large bowl, using an electric mixer on medium speed, beat the butter, peanut butter and brown sugar until smooth, blended and lightened in color, about 1 minute. Stop the mixer and scrape down the sides of the bowl as needed during mixing. Mix in egg. Add vanilla and beat for 1 minute or until batter is smooth.
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On low speed, add the flour mixture to the creamed mixture in 3 additions and the milk in 2 additions, beginning and ending with the flour mixture and mixing until the flour is incorporated and the batter looks smooth.
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Fill each liner with a generous 1/4 cup of batter, to about 1/3 inch below the top of the liner. Bake just until the tops feel firm and are lightly browned and a toothpick inserted in the center comes out clean, about 22 minutes. There will be cracks on the top.
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Cool cupcakes for 10 minutes in the pan on a wire rack. Once cooled - fill cupcakes with jelly either by cutting out a little cone shape from the top, and then filling the hole with jam or inserting a piping tip and squirting jelly into the cupcake.
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For frosting
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Cream powdered sugar and butter together, add peanut butter. Mix well, add vanilla extract and enough milk to make it easy enough to spread. Beat mixture together until you have the consistency you want. Frost cupcakes when completely cooled.
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*If you'd like to try another variation of this cupcake - instead of the PB frosting and jelly - try a chocolate glaze instead.
