Step 1

Grease an 8 x 8 inch square pan.

Step 2

In a heavy 4 quart saucepan melt butter over medium heat; add brown sugar, corn syrup and milk. Stirring constantly, heat to 242 to 248 degrees F (116 to 120 degrees C), or until a small amount of syrup dropped into cold water forms a firm but pliable ball. Remove from heat and stir in vanilla extract. Pour into prepared pan.

Step 3

When caramel has cooled and set, cut into 1 inch squares. Chill in refrigerator until firm.

Step 4

Melt chocolate with 1 tablespoon butter in the top of a double boiler or in a bowl in the microwave. Stir until smooth.

Step 5

Dip caramel squares in chocolate and place on wax paper to cool.