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I highly doubt such a breed that can fit in a teacup even exists (like the chiuaua kind of teacup) this would be cruel to even try and create something like that they would be totally defenseless, Dwarf cats are pretty fast and can jump very high.
As far as I know though the smallest cat breed (which is actually small in size and not short) is the Singapura they can get up to 6-8 pounds its fairly short and has an EXTREMELY CUTE face with huge shiny eyes and and kind of a milky ashy furr color an absolute beauty!
watch this - http://animal.discovery.com/videos/cats-101-singapura.html
as opposed to the Munchkin which can come in all shapes and sizes or the Bambino which is basically a cross between the munchkin and the Sphynx, Sphynx cats are pretty small as it is though considering they also have no hair which makes them smaller. these two are "Dwarf Breeds" and wont but again will not fit into a cup!
People are waiting to help.