1. Heat the oven to 375°F. Line two large cookie sheets with parchment paper.
2. In a large mixing bowl, beat the butter and sugar until creamy. Add the egg, vanilla and milk; beat until mixed.
3. In a medium bowl, combine the baking soda, baking powder, pudding mix, and flour. Gradually add the dry ingredients to the wet ingredients, mixing until combined.
4. Shape the cookie dough into one-inch balls. For each cookie, flatten one cookie dough ball in the palm of your hand; place a caramel candy in the center and wrap the cookie dough around the candy. Place cookies onto prepared cookie sheets about 2 inches apart; sprinkle with sea salt.
5. Bake 10 minutes or until the cookie edges are light golden brown. Sprinkle with additional sea salt immediately, if desired. Allow the cookies to cool 5 minutes before transferring to cooling racks to cool completely.
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