Mix Wet Ingredients: In a large bowl, cream butter, brown sugar, and granulated sugar until light and fluffy.

Beat in egg and vanilla.

Sift Dry Ingredients: In a separate bowl, sift flour, baking soda, baking powder, and salt.

Combine: Gradually add dry mixture to wet until just combined.

Stir in butterscotch chips.

Preheat the oven to 350°F. Line baking sheets with parchment.

Scoop 2 Tbsp dough per cookie and roll into balls. Place 2 inches apart.

Bake for 10–12 minutes, or until the edges are lightly golden. Centers should look slightly soft.

Cool on pan for 3 minutes, then transfer to a wire rack.

In a heat safe bowl, microwave in 30 second bursts, stirring each time. 1-2 minutes, melt butter and butterscotch chips until smooth stirring each time. (You can also melt in a saucepan)

Whisk in powdered sugar, cream, vanilla, and pinch of salt. Beat until fluffy. (If melting in a saucepan remove from heat first)

Add more cream as needed for a spreadable texture.

Spread or pipe frosting on each cooled cookie.

Drizzle caramel sauce over the top.

Sprinkle with tiny amount of flaky sea salt or candy sprinkles if desired.