In the bowl of a stand mixer fitted with the paddle attachment, beat butter, brown sugar, and ½ cup granulated sugar at medium speed until fluffy, 3 to 4 minutes, stopping to scrape sides of bowl. Add egg, beating well. Beat in vanilla.
In a medium bowl, whisk together flour, baking soda, and salt. With mixer on low speed, gradually add flour mixture to butter mixture, beating until combined. Beat in caramel chips. Cover and refrigerate for 1 hour.
Preheat oven to 350°. Line baking sheets with parchment paper.
Using a 1½-tablespoon spring-loaded scoop, scoop dough, and press into a flat disk. Place one caramel piece in center. Fold dough up and over caramel, pinching to seal dough; roll into a ball. Repeat with remaining dough and remaining caramels.
In a small bowl, stir together cinnamon and remaining ½ cup granulated sugar. Roll balls in cinnamon sugar, and place at least 2 inches apart on prepared pans.
Bake until golden, about 12 minutes. Top with sea salt, if desired. Let cool completely on pans.
Notes
*We used Ghirardelli Caramel Flavored Baking Chips and Kraft Caramels.
Recipe by Southern Lady Magazine at https://southernladymagazine.com/salted-caramel-snickerdoodles-recipe/