Heat oven to 375°F. In large bowl, beat condensed milk and peanut butter with electric mixer on medium speed until well blended.
Stir in baking mix and vanilla until well blended.
Shape dough into 48 (1-inch) balls. Measure sugar into small bowl. Dip top of each ball into sugar. On ungreased cookie sheets, place balls 2 inches apart.
Bake 7 to 9 minutes. Firmly press 1 caramel into center of each cookie. Bake about 1 minute or until chocolate begins to soften and cookie begins to turn light golden brown. Cool 2 to 3 minutes. Remove from cookie sheets to cooling rack. Cool completely, about 30 minutes.