Step #2 In a heavy 4 quart saucepan melt butter over med-heat/flame; add brown sugar, corn syrup & milk.
Step #3 Stirring constantly, heat to 242 to 248 degrees F (116 to 120 degrees C), or until a small amount of syrup dropped into cold water forms a firm but pliable ball.
Step #4 Remove from heat & stir in the vanilla extract.
Step #5 Pour into prepared pan.
Step #6 When caramel has cooled & set, cut into 1 inch squares.
Step #7 Chill in refrigerator until firm.
Step #8 Melt chocolate with 1 tbsp butter in the top of a double boiler or in a bowl in the microwave.
Step #9 Stir until smooth.
Step #10 Dip caramel squares in chocolate & place on wax paper to cool.