Prepare two baking sheets by lining with parchment paper.
Preheat oven to 350℉ (177℃)
Place flour, baking soda, cinnamon and salt in a bowl. Whisk together until well combined..
Using a hand-held or stand- mixer fitted with the paddle attachment, mix butter and sugar together until smooth.
Add egg and mix until smooth.
Stir in grated apple.
Add dry ingredients and mix on low speed until just combined.
Roll 18 rounded balls of dough (approximately 2 teaspoons each) and place on prepared cookie sheets.
Make 18 small discs using the cookie dough (approximately ½").
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).
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.