Line an 8-inch square pan with parchment, leaving overhang. Lightly butter the paper. Crush candies and set aside.
Warm the cream and condensed milk in a small saucepan over low heat. Keep just steaming, not boiling.
Stir sugar, corn syrup, and water in a heavy pot. Cook over medium heat until clear and bubbling.
Brush pan sides with water to dissolve crystals. Add butter and stir until melted.
Clip on a candy thermometer. Slowly stream in the warm cream mixture, stirring constantly.
Cook, stirring often, until the caramel reaches 244–246°F. Remove from heat.
Stir in salt, vanilla, and peppermint extract. Work quickly.
Pour into the prepared pan. Tap to level. Sprinkle crushed peppermint and gently press to adhere.
Melt white chocolate and drizzle over the top, if using. Cool completely, 3–4 hours. Cut and wrap.
Notes
Variation: Dip set caramels in melted dark chocolate and finish with a pinch of flaky sea salt. Storage: Wrap each piece in wax paper and keep in an airtight tin at cool room temperature for up to 2 weeks, or freeze up to 2 months.This recipe is an original creation inspired by classic Peppermint Caramels Recipe flavors. All ingredient ratios and instructions are independently developed.