Preheat your oven to 350°F.

In a medium bowl, whisk together the flour, baking powder, baking soda, and salt.

In a large bowl, cream the butter, brown sugar, and granulated sugar with an electric mixer on high speed until light and fluffy, about 2-3 minutes.

Add the egg yolks, vanilla extract, butter extract, and melted butterscotch chips. Mix on medium speed until pale and fluffy, 1-2 minutes. Scrape the bowl as needed.

Gradually add the dry ingredients to the wet ingredients, mixing on low speed until combined.

Fold in the butterscotch chips with a rubber spatula.

Scoop the dough into 2-tablespoon portions and place them 2 inches apart on a parchment-lined baking sheet. Bake for 10-11 minutes.

After baking, use a large circular cookie cutter to shape the cookies. Let them cool on the baking sheet for 5 minutes, then transfer to a wire rack to cool completely.

In a pot, simmer the butterscotch beer over medium-low heat until it thickens and turns a deep golden color, about 15-17 minutes.

Reduce heat to low and mix in the butter until fully incorporated.

Add the cream and salt, letting the caramel simmer for one more minute, then remove from heat to cool.

In a medium bowl, whip the softened butter and salt with an electric mixer on high speed until pale and fluffy, about 5-10 minutes.

Mix in the melted butterscotch chips until fully combined.

Gradually sift in the powdered sugar, mixing until fully incorporated.

Add the butter extract and vanilla, beating until light and fluffy, about one more minute.

Once cooled, spread butterscotch buttercream on each cookie using a mini offset spatula.

Drizzle with butterbeer caramel and add sprinkles if desired. Enjoy your magical treat!