In bowl mix butter, sugar, eggs, chocolate, milk, vanilla. Mix in remaining ingredients to a soft dough, scraping bowl constantly. Chill dough 1 to 2 hours. Heat oven to 400 degrees. Mold dough around caramel halves or cherries and place on ungreased baking sheet. Bake about 7 minutes or until set. Cool. Dip in frosting.
Frosting: In small bowl blend all ingredients. Dip cooled cookies in frosting, allow to dry.
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