Preheat your oven to 350 degrees F. Sift together flour, baking powder and salt into a bowl. Put butter and 1 and 1/2 cups sugar in the bowl of an electric mixer fitted with the paddle attachment. Mix on medium speed until pale and fluffy, about 3 minutes. Mix in eggs. Reduce speed to low; gradually mix in flour mixture.

Stir together cinnamon and remaining 2 tablespoons sugar in a small bowl. Using a cookie scoop (or a spoon), scoop out portions of dough and flatten them with your hand. Place an unwrapped caramel in the middle and wrap the dough around it completely. Then shape dough into balls and roll in cinnamon sugar. Space 3 inches apart on baking sheets lined with parchment paper.

Bake cookies, rotating sheets halfway through, until edges are golden, 12 to 15 minutes (mine baked for 12). Let cool on sheets on wire racks.