Mix together the flour, baking soda, and corn starch together. Set aside.
Beat the butter until smooth. Add in the sugars and beat until fluffy and creamy - about 2 minutes on medium if using a stand mixer. Add in the egg and yolk and beat until incorporated. Mix in the extracts and beat well.
Slowly add the flour mixture into the wet ingredients and mix until just combined. Fold in the pretzels and chocolate chips.
Allow the dough to chill for about one to two hours. Preheat your oven to 325 degrees F.
Scoop out one tablespoon of dough and create a little nest. Insert the caramel into the nest. Cover with another tablespoon of dough. Lightly roll the ball of dough to ensure there are no cracks the caramel can leak from. Repeat with the remaining dough.
Bake for 13 minutes. If you have to bake in batches, leave the second and/or third batch in the refrigerator while it awaits its turn.
Allow the cookies to rest for about 2 - 3 minutes before transferring to a wire rack to cool.
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