In a large bowl, beat butter, confectioners’ sugar, and vanilla with a mixer at medium speed until creamy. Add egg yolk, beating well.
In a medium bowl, sift together flour, baking powder, and ¼ teaspoon salt. With mixer on low speed, gradually add flour mixture to butter mixture, beating until a soft dough forms. Cover and refrigerate for 1 hour.
Preheat oven to 350°. Line baking sheets with parchment paper.
Roll dough into 1-inch balls. Place 2 inches apart on prepared pans. Using your thumb or the back of a spoon, gently press an indentation in center of each ball.
Bake for 8 minutes. Place 1 caramel piece in center of each indentation. Bake until cookies are lightly browned, 3 to 4 minutes more. Sprinkle with remaining 1 tablespoon salt. Let cool completely on pans. Store in an airtight container for up to 3 days.
Recipe by Paula Deen Magazine at https://pauladeenmagazine.com/salted-caramel-thumbprint-cookies/