- Prepare Baking Sheet: Line a baking sheet with parchment paper.
- Make Caramel: In a saucepan, combine butter, brown sugar, granulated sugar, and sweetened condensed milk. Bring to a boil, stirring constantly.
- Simmer: Reduce heat and simmer for 5 minutes, stirring continuously.
- Add Vanilla: Remove from heat and stir in vanilla extract.
- Form Caramels: Drop caramel by rounded tablespoons onto prepared baking sheet.
- Melt Chocolate: In a bowl, melt chocolate chips with butter.
- Dip Caramels: Dip each caramel in melted chocolate and place back on baking sheet.
- Sprinkle with Pecans: Sprinkle pecans over chocolate-dipped caramels.
- Let Cool: Let caramels cool completely before serving.
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