Preheat oven to 350° F and spray cookie sheet with nonstick cooking spray or line with parchment paper.
In medium bowl, cream together butter, brown sugar, and sugar until incorporated and fluffy. Add vanilla and egg and mix well.
Add flour, instant pudding mix, baking soda, and salt and mix until combined.
Cut Baker's chocolate bar into small chunks and add entire bar to dough mixture and combine.
Scoop cookie dough out by about 2 Tablespoonful and flatten in the palm of your hand. Press 1 caramel into the center of the dough and seal dough around it, covering completely and creating a ball.
Place on prepared cookie sheet and continue with rest of dough, spacing about 2-3 inches apart.
Bake cookies at 350° F for 10-13 minutes. Allow to cool on cookie sheet for about 5-10 minutes before moving to wire rack to continue cooling.