Microwave ½ cup morsels in small, microwave safe bowl on high for 45 seconds, stir, Microwave another 20 seconds, stirring until smooth; cool.
Combine flour, baking soda, and salt in small bowl.
In a large bowl, beat sugar, oil, egg and vanilla, with a electric mixer until blended. Beat in melted chocolate; gradually beat in flour mixture alternately with water.
Beat cream cheese, sugar, egg and salt in small bowl until creamy, Stir in 1 cup semi-sweet morsels. Batter will be thin.
Preheat oven to 350ºF. Paper line 15 muffin cups.
Spoon cupcake prepared muffin cups, filling ½ full. Spoon filling by rounded tablespoons over batter. Spoon remaining batter over filling. Bake for 20-25 minutes or until pick inserted in center comes out clean. Remove from oven to cool.
Sprinkle with confectioners sugar.