Preheat your oven to 350°F (175°C).

Prepare the cream cheese filling by mixing cream cheese, granulated sugar, and vanilla extract until smooth.

Mix dry ingredients: whisk together flour, baking soda, baking powder, and fine salt in a bowl.

In a large bowl, cream together the softened butter, granulated sugar, and brown sugar until fluffy.

Add the egg and vanilla extract to the butter mixture and beat until smooth.

Gradually fold the dry ingredients into the wet mixture until combined.

Shape the cookies by placing a tablespoon of dough, flattening it, adding cream cheese filling, and rolling to enclose.

Place shaped cookies on a lined baking sheet, spaced 2 inches apart.

Bake for 10-12 minutes until the edges are golden and centers are soft.

Cool cookies before drizzling with warm caramel sauce.