In a mixing bowl, beat cream cheese until smooth. Gradually mix in powdered sugar and vanilla extract until well combined. Fold in crushed pretzels.

Cover the cheesecake mixture and refrigerate for at least 2 hours.

Use a cookie scoop to portion out the cheesecake mixture and roll into 1-inch balls. Place on a parchment-lined baking sheet.

In a microwave-safe bowl, combine soft caramels and heavy cream. Heat in 30-second intervals until melted and smooth.

Dip each cheesecake ball into the caramel, then roll in crushed pretzels. Optionally sprinkle with sea salt.

Refrigerate the finished cheesecake balls for at least 30 minutes to set the caramel.