Preheat oven to 350 F. Prepare baking sheet(s) with baking mat, parchment paper or lightly grease.
Using stand or hand mixer, cream together butter, white sugar, and brown sugar until fluffy, about 3 minutes, scraping sides occasionally.
Add egg and vanilla and beat well.
In separate bowl, combine flour, cinnamon, salt, and baking soda. Add to creamed butter mixture. Add up to ¼ cup extra flour to make sure dough is not sticky.
Using 1.5 inch scoop, scoop dough into balls and press center of balls with thumb to make a hole. Roll caramels into the cookie dough balls, covering COMPLETELY.
In small bowl, combine ¼ cup white sugar and cinnamon. Roll dough balls in cinnamon sugar mixture and place on prepared baking sheets.
Bake at 350F for 10-11 minutes.
Notes
Best eaten warm. Store in airtight container at room temperature, do not refrigerate, or caramel will harden.