Preheat your oven to 350°F (175°C).
In a large mixing bowl, cream together the softened butter and cream cheese until smooth and combined.
Add the granulated sugar to the mixture and beat until it becomes light and fluffy.
Beat in the egg and vanilla extract until well combined.
In a separate bowl, whisk together the all-purpose flour, baking powder, and salt.
Gradually add the dry ingredients to the wet mixture, mixing until fully combined.
Gently fold in the caramel bits and mini chocolate chips (if using).
Drop tablespoon-sized portions of dough onto a baking sheet lined with parchment paper, spacing them about 2 inches apart.
Bake for 10-12 minutes, or until the edges are lightly golden, and the centers are set.
Let the cookies cool on the baking sheet for about 5 minutes before transferring them to a wire rack to cool completely.