Preheat the oven to 350 degrees. Line two muffin tins with cupcake liners.

In a large bowl cream the butter and sugar until smooth. Add the eggs and mix well. Stir in the vanilla.

In a medium bowl combine the flour, baking powder, salt, walnuts, cinnamon, and nutmeg.

Add half of the flour mixture to the butter mixture and mix well. Add in the milk and stir until combined. Stir in the remaining flour until smooth.

Fill the cupcake liners 2/3 of the way full with the vanilla batter.

Bake for 22-25 minutes or until a toothpick inserted into the center comes out clean.

Remove from oven and cool on a wire rack.

Meanwhile beat the butter for the frosting with a hand mixer until smooth. Add in the Dulce de Leche and mix well.

Add the powdered sugar 1/2 cup at a time until your frosting is the desired consistency. Pipe onto cooled cupcakes.

Sprinkle the cupcakes with chopped walnuts and cinnamon.