Preheat oven to 350 degrees F (175 degrees C). Grease an 8-inch square baking pan.
In a medium bowl, cream together the butter, white sugar, and brown sugar until smooth. Beat in the vanilla and egg. Combine the flour, baking powder, and salt; stir into the creamed mixture. Fold in the chocolate chips and walnuts. Spread evenly into the prepared pan.
Bake for 25 to 30 minutes in the preheated oven. Cool in the pan on a wire rack. Spread caramel topping over the cooled bars.
Cut into squares, and serve.
Interesting Facts
Chocolate Caramel Squares are a great way to use up leftover candy bars.
These squares can be made ahead and stored in the refrigerator for up to a week.
These squares can also be frozen for up to 3 months.