Preheat oven at 170 deg C. Line a baking tray with butter paper, Grease it with butter.
Take all purpose flour, baking powder, baking soda and salt in a mixing bowl. Mix it well.
In another bowl, place butter (at room temperature), vanilla and sugar.
Beat well until creamy using whisk.Add milk and beat again until light and pale.
Add flour mixture little by little and gather together with your finger tips.
Once you form a dough, add caramel chips and fold gently to incorporate in the dough.
Divide into equal sized balls, 1 tbsp each.
Arrange leaving space in the baking tray.Flatten slightly into thick cookies.
Bake for 10 - 12 minutes, or until the cookies start turning golden at the edge.
Take out the baking tray and let it sit for a minute or two.
Then take out the cookies and cool them completely over wire rack before storing.