Set the temperature of the oven to 350 F (175 C). Line a large baking sheet with parchment paper.

Now, evenly spread the mini pretzels on the baking sheet.

For the caramel coating, first, melt the butter in a saucepan over medium flame. Add brown sugar and mix until it starts boiling.

Allow it to boil for around 2-3 minutes, by stirring occasionally. Remove the saucepan from the heat and mix in the vanilla extract.

Now, pour the caramel evenly over the pretzels on the baking sheet. Make sure to toss the pretzels for even coating with the caramel.

Put the baking sheet in the oven and bake for around 10 minutes. Remove it from the oven and stir the pretzels for evenly coating.

Put it back to the oven and bake for more 5 minutes.

Take it out from the oven and allow the pretzels cool completely on the baking sheet. Put toppings like nuts, chocolate chips or sprinkles while the caramel is warm.

Once ready, you can break the pretzels into bite-sized pieces.