Caramel cookie is made with caramel prepared from melted sugar and is a treat for the cookie lover. It is also prepared by incorporating brown sugar into the batter and baking it to get the rich caramel hue. A number of spices like cloves and cardamom can be added to the recipe which has flour as the base. The cookie may or may not be given a frosting. The frosting for the caramel cookie usually contains some crushed nuts like walnuts.