Preheat the oven to 350°F (175°C).

In a mixing bowl, combine flour, sugar, and baking powder.

Add softened butter and mix until crumbly.

Beat in eggs, watermelon puree, and vanilla extract until smooth.

Pour batter into muffin tin and bake for 20 minutes.

In a bowl, beat cream cheese until smooth.

Gradually add powdered sugar and vanilla extract, mixing until creamy.

Once cupcakes are cooled, frost them and top with watermelon chunks.