In a large bowl, combine the sugar cookie mix, pudding mix, butter and egg. Press into an ungreased 13 x 9 inch baking pan. Bake at 350° for 20 to 25 minutes or until set.
In a large saucepan, combine caramels and milk. Cook and stir over medium-low heat until melted. Remove from heat. Stir in nuts and vanilla. Pour over crust. Sprinkle with butterscotch chips. Cool completely. Cut into bars. Store in an airtight container. Makes about 3 dozen.
