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Preheat oven to 400°F. Line 18 muffin cups with paper liners.
In a large bowl, whisk together flour, 1 cup sugar, baking powder, and salt. Work in the softened butter with an electric mixer or fork, until butter is in tiny bits, similar to coarse sand. Blend in the eggs, milk, and vanilla until all ingredients are incorporated, but do not overbeat. Gently fold in the berries.
In a small bowl, mix together softened cream cheese and 2 ½ tablespoons sugar until smooth and blended. Set aside.
Scoop a heaping tablespoon of batter into each prepared muffin cup, adding just enough that the bottom of the muffin liner is covered. Add a small dollop (about a teaspoon) of cream cheese mixture to the center of each muffin cup. Top cream cheese with another spoonful of batter, evenly dividing the remaining batter between the muffin cups. If desired, sprinkle the top of each muffin with sparkling sugar.
Bake for 15 to 20 minutes or until muffins just test done with a toothpick, taking care not to overbake. Remove muffins from pans and cool on a wire rack, or eat warm out of the oven.