Prepare two baking sheets by lining with parchment paper or silicone baking mats.
Preheat oven to 350℉ (180℃)
Place flour, baking soda, cinnamon and salt in a bowl. Whisk together until well combined. Set aside for later.
1 ½ Cups All-Purpose Flour, ½ teaspoon Baking Soda, 1 teaspoon Ground Cinnamon, ½ teaspoon Salt
Using a hand-held or stand- mixer fitted with the paddle attachment, mix butter, brown sugar and granulated sugar together until smooth (approximately 3 minutes). Scrape down bottom and sides of bowl as needed.
½ Cup Granulated Sugar, ½ Cup Brown Sugar, ½ Cup Unsalted Butter
Add egg and mix until smooth.
1 large Egg
Stir in grated apple.
1 cup Apple, peeled, cored and shredded
Add dry ingredients and mix on low speed until just combined.
Make 18 small discs using the cookie dough (approximately ½" diameter). Set aside for later.
Roll 18 rounded balls of dough (approximately 1 tablespoon each) and place on prepared cookie sheets.
Using your thumb, make a small indentation in each cookie ball (the indentation should be large enough for the caramel.
Place a caramel in each indentation. Place the cookie dough discs over the caramel. Seal the caramel in the cookie dough by rolling into a ball (ensure no caramel is showing).
18 pieces Caramel squares
Bake in preheated oven for 10 - 12 minutes. The cookies will be a light golden color on top.
Remove pans from oven and let cool for 5 minutes then move to cool completely on wire racks.