In a medium bowl, whisk together 2 ½ cups of all-purpose flour, 1 teaspoon of baking soda, 1 teaspoon of baking powder, and ½ teaspoon of salt until well combined. Set aside.

In a large mixing bowl, use an electric mixer to beat together ½ cup of softened unsalted butter, 1 cup of packed light brown sugar, and ½ cup of granulated sugar until light and fluffy, about 2-3 minutes.

Add 2 room-temperature egg yolks, 2 teaspoons of vanilla bean paste, and 1 teaspoon of butter extract to the creamed mixture. Blend until fully integrated, then mix in ½ cup of melted butterscotch chips.

Gradually add the dry ingredients to the wet mixture, folding gently until just combined. Fold in 1 cup of butterscotch chips.

Using a cookie scoop, portion out the dough onto parchment-lined baking sheets, spacing each cookie about 2 inches apart. Shape them into balls.

Preheat your oven to 350°F (175°C) and bake the cookies for 10-11 minutes until the edges are lightly golden. Cool on sheets for 5 minutes before transferring to wire racks.

In a small saucepan, simmer 1 cup of butterscotch beer until thickened, about 5-7 minutes. Stir in 2 tablespoons of unsalted butter, ¼ cup of heavy cream, and a pinch of salt until combined.

In a mixing bowl, whip ½ cup of softened unsalted butter with a pinch of salt until fluffy. Gradually add 1 ½ cups of powdered sugar and mix until smooth, then blend in the remaining melted butterscotch chips.

Frost cooled cookies with the butterscotch buttercream and drizzle with warm butterbeer caramel. Optionally, sprinkle with festive toppings.