Best way for live plugin development

The time has come, and I have to develop my own capacitor plugin.
I was trying to follow documentation on setting up plugin, but I am facing some issues.

So I set up VueJs project with capacitor and I have live-reloading local app for tests

then npm init @capacitor/plugin and I’ve created my-plugin in main ./ project directory.
Then I did npm install ./my-plugin and npx cap sync android

So I am trying to attach it to my project with import { MyPlugin } from 'my-plugin'
But I try to compile/run my app I get This dependency was not found:

in my package json I have "my-plugin": "file:my-plugin",

Anyone can suggest best approach for live plugin developing ?

I think that should work, but it’s probably better if the plugin is outside your app project, not sure if that can cause problems.