Line an 8×8-inch baking pan with parchment paper. Lightly butter the parchment paper. (Binder clips help hold up the parchment paper).
In a 3-quart pot add the sugar. Put over medium-low heat.
Heat until the sugar begins to melt, stirring it to prevent burning. Continue to cook into the sugar is completely melted into a liquid and there are no sugar clumps.
Once the sugar is completely melted, add in the butter and stir to combine it completely. Be careful as steam will rise up, ensure you’re stirring constantly to incorporate the butter.
Add in the heavy cream, a little at a time while ensuring to stir the entire time. Continue to do so until all the cream is combined.
Remove the caramel from the heat and add in the shot of espresso and espresso powder. Stir to combine completely.
Last, add in the vanilla extract and stir to combine completely.
Transfer the chocolate caramel to the prepared pan and spread it out evenly.
Let it cool for at least 4 hours or even overnight.
Remove the caramel from the pan and place on a cutting board. Using a sharp knife, cut into 36 small squares (or rectangles or however you like)! These are about 1.3-inch squares.
Wrap each one in wax paper for individual caramels. Or place in a candy cup if adding into a chocolate box.
Store at room temperature for up to 2 weeks.