In a large bowl, beat cream cheese and butter with mixer until blended. Add sugar and extract; mix well. Gradually add flour, beating well after each addition.
Microwave caramels and half-and-half in a small microwavable bowl on HIGH for 1-1/2 minutes or until caramels are completely melted and mixture is well blended, stirring after 1 minute. Cool 5 minutes.
Shape dough into 48 (1-inch) balls. Roll in nuts until evenly coated. Place 2 inches apart on parchment-covered baking sheets. Indent centers.
Pour caramel sauce into resealable plastic bag. Cut small piece off one bottom corner of bag; use to squeeze caramel sauce into indentations in center of dough.
Bake in a preheated 350º oven for 12 to 14 minutes or until edges are lightly browned. Cool on baking sheets 5 minutes. Remove to wire racks; cool completely before serving.