Preheat the oven to 350 degrees.

Line a cupcake pan with 12 paper liners.

In a medium bowl combine the flour, baking powder, salt, and pumpkin pie spice. Mix and set aside.

In a large bowl combine the sugar, brown sugar, eggs, and butter. Beat until smooth.

Add in the pumpkin puree and vanilla and mix well.

Pour the dry ingredients into the wet ingredients and stir until combined.

Fold in the butterscotch chips.

Fill the cupcake cups 3/4 of the way full. Bake for 20-25 minutes or until a toothpick inserted into the center comes out clean.

Cool completely on a wire rack.

In a large bowl combine the butter and milk, Mix with a mixer until smooth. Add in the powdered sugar, a half cup at a time, until desired consistency is reach. Add in the caramel flavoring and mix well.

Frost the cupcakes with the frosting and top with sprinkles if desired.