Preheat oven to 350° F. Grease muffin tins or line with paper cups.
In a large bowl, combine flour, sugar, baking powder, cinnamon and salt.
In another bowl, combine egg and milk. Stir in butter and vanilla extract. Add flour mixture and stir just to blend. Stir in apples and caramels. Divide batter evenly among prepared cups. Bake for 25 minutes or until tops spring back when lightly pressed.
Serve warm.Servings: 12 muffins