Step 1

Heat oven to 350°F.

Step 2

Beat cream cheese and butter in large bowl with mixer until blended. Add sugar and extract; mix well. Gradually add flour, beating well after each addition.

Step 3

Microwave caramels and half-and-half in small microwaveable bowl on HIGH 1-1/2 min. or until caramels are completely melted and mixture is well blended, stirring after 1 min. Cool 5 min. Meanwhile, shape dough into 48 (1-inch) balls. Roll in nuts until evenly coated. Place, 2 inches apart, on parchment-covered baking sheets. Indent centers.

Step 4

Pour caramel sauce into resealable plastic bag. Cut small piece off one bottom corner of bag; use to squeeze caramel sauce into indentations in dough.

Step 5

Bake 12 to 14 min. or until edges are lightly browned. Cool on baking sheets 5 min. Remove to wire racks; cool completely.