Midnight Recovery

You choose the creature as the spell resolves. The cipher ability doesn’t target that creature, although the spell with cipher may target that creature (or a different creature) because of its other abilities.

If you want to encode the card with cipher onto a noncreature permanent such as a Keyrune that can turn into a creature, that permanent has to be a creature before the spell with cipher starts resolving. You can choose only a creature to encode the card onto.

The spell with cipher is encoded on the creature as part of that spell’s resolution, just after the spell’s other effects. That card goes directly from the stack to exile. It never goes to the graveyard.

If a creature with an encoded card deals combat damage to more than one player simultaneously (perhaps because some of the combat damage was redirected), the triggered ability will trigger once for each player it deals combat damage to. Each ability will create a copy of the exiled card and allow you to cast it.

If you choose not to cast the copy, or you can’t cast it (perhaps because there are no legal targets available), the copy will cease to exist the next time state-based actions are performed. You won’t get a chance to cast the copy at a later time.

If the creature leaves the battlefield, the exiled card will no longer be encoded on any creature. It will stay exiled.

The copy of the card with cipher is created in and cast from exile.