PREHEAT oven to 375° F.
COMBINE flour, cinnamon, baking soda and salt in small bowl. Beat butter, granulated sugar, brown sugar and vanilla extract in large mixer bowl until creamy. Add eggs, one at a time, beating well after each addition. Gradually beat in flour mixture. Stir in morsels and apple pieces. Drop by rounded tablespoon onto ungreased baking sheets.
BAKE for 9 to 11 minutes or until golden brown. Cool on baking sheets for 2 minutes; remove to wire racks to cool completely.
MICROWAVE caramels and milk in small, microwave-safe bowl on HIGH (100%) power for 30 seconds; stir. Microwave at additional 10- to 20-second intervals; stir until smooth. Place sheets of wax or parchment paper under wire racks. Drizzle melted caramels over cookies. Allow drizzle to set. Store in single layers in tightly covered containers.