Preheat the oven to 180°C (350°F) and line a baking sheet with parchment paper.

Cream the butter and sugar together until light and fluffy.

Add the egg yolk and mix until well combined.

Sift in the flour, baking powder, and salt, then mix to form a soft dough.

Divide the dough into small balls and flatten each ball slightly in your palm.

Place a small piece of caramel in the center of each dough ball and wrap the dough around it, sealing it completely.

Arrange the stuffed dough balls on the prepared baking sheet, spacing them apart slightly.

Bake for 10-12 minutes or until the edges are golden.

Let the cookies cool on the baking sheet for 5 minutes before transferring to a wire rack.

If desired, drizzle melted caramel over the cookies for extra flavor.