Preheat oven to 350°F (175°C) and line baking sheets with parchment paper.
Cream the softened butter, brown sugar, and granulated sugar until light and fluffy.
Beat in the egg and vanilla until smooth.
Whisk flour, baking soda, cinnamon, and salt in a separate bowl; add to butter mixture until a soft dough forms.
Scoop 2 tablespoons of dough, flatten slightly, place caramel in center, and wrap dough around it; roll into balls.
Mix coating ingredients and roll dough balls to coat.
Bake 10–12 minutes until golden and soft; cool before serving.
