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In a small saucepan, combine sweetened condensed milk and butter. Cook over medium-low heat, stirring constantly, until the mixture thickens and turns a deep golden amber (about 8–10 minutes). Remove from heat. Stir in ¼ tsp flaky sea salt.
Pour into a parchment-lined 8x8-inch pan. Smooth the top. Let cool at room temperature for 30–45 minutes, or until firm enough to cut.
Lift out using parchment overhang. Cut into 1-inch squares. Melt chocolate chips in a microwave-safe bowl (30-second intervals, stirring between) or over a double boiler. Using a fork, dip each caramel square into the melted chocolate, tap off excess, and place on a parchment-lined tray. Immediately sprinkle with a pinch of flaky sea salt.
Let set at room temperature for 15–20 minutes (or speed it up in the fridge for 10 minutes). Store in an airtight container at cool room temperature for up to 2 weeks.