1. Preheat oven to 350 degrees. Sift together flour and baking powder.

2. In a medium mixing bowl, combine butter, brown sugar and egg yolks. With electric mixer at medium speed, beat until smooth and fluffy.

3. Using wooden spoon, stir in vanilla, nuts and flour mixture. Mix well.

4. For each acorn, shape 1 slightly rounded teaspoon of dough into a ball. With fingers, pinch dough to a rounded point at one end to resemble an acorn.

5. Place 1 inch apart, on ungreased baking sheet, pointed side up. Bake 15 to 18 minutes or until golden brown. Remove from baking sheet to rack; cool completely.

6. In top of a double boiler, combine caramels and 1/4 cup water. Over hot water, stir until caramels are melted and mixture is smooth. Remove from heat.

7. Dip large end of cooled cookie into caramel, then into nuts. Store covered in refrigerator. Makes 75 acorns.