Abstract: Caramel confections which facilitate coating, depositing, molding and baking are prepared from a finely divided solid candy phase dispersed within a continuous fat phase. These products differ from conventional caramel products which are based on sugars and milk protein and typically exhibit a chewy texture but are difficult to mold or to otherwise handle. A powdered caramel brittle material is made by sheeting, cooling and grinding a caramel prepared by cooking aqueous milk solids with sugar to a moisture level of below 6%. Preferably, from 5 to 35% of the powdered caramel brittle is mixed with 30 to 60% granulated sugar, 17 to 40% fat, and 10 to 25% milk solids. The mixture is refined to obtain an average particle size of 0.0004 to 0.0020 inches, mixed with an emulsifying agent and additional vegetable fat, and heated as necessary to reduce the moisture level.