Cream together the butter, apple sauce and sugar. Add in the vanilla and eggs, one at a time. When the eggs are incorporated, add the caramel.
Combine baking powder, baking soda, salt and flour and mix in one cup at a time. Stir in the apple chips.
Drop 2 oz portions of dough onto a sheet pan lined with parchment paper and bake for 12 – 15 minutes. Let cool on the pan for a few minutes before transferring to a wire rack to cool completely.