Preheat your oven to 350°F (175°C). Line two baking sheets with parchment paper.

In a large mixing bowl, cream together softened butter, brown sugar, and granulated sugar until light and fluffy, about 2-3 minutes. Add eggs one at a time and then mix in vanilla extract.

In a separate bowl, whisk together flour, baking powder, baking soda, and salt. Gradually add to wet ingredients, mixing on low until just incorporated.

Fold in crushed graham crackers gently into the cookie dough.

Portion 2-inch balls of dough, roll in remaining graham cracker crumbs, and flatten to about ¾ inch on the baking sheets.

Bake for 8-10 minutes or until edges are golden brown. Cool on baking sheets for 5 minutes before transferring to a wire rack.

Prepare frosting by beating cream cheese, softened butter, and vanilla until smooth. Gradually add powdered sugar until fluffy.

To make caramel, combine butter, brown sugar, salt, and whipping cream in a saucepan over medium heat, stirring until boiling. Cook for 5-7 minutes until thickened.

Drizzle cooled caramel over frosted cookies and let set before serving.