Cream together 8 ounces cream cheese and 1 cup butter until smooth and completely incorporated. Add 2½ cups all-purpose flour and ½ teaspoon salt then mix until a dough is formed. Bring it together into a ball, then flatten into a small disk. Wrap in plastic wrap and refrigerator for at least 30 minutes.
Meanwhile cook 4 baking apples and ¼ cup caramel sauce over medium heat until the apples are softened. Chill until ready to use.
Cut dough into two parts, then roll the first part out to about ⅛-inch thick. Cut into 4 inch circles and place a rounded Tablespoon of chilled apple mixture in the center. Run a wet finger around the edge of the dough and then fold the dough in half. Crimp the edges to seal and place on a greased or lined baking sheet. Place baking sheet in refrigerator for at least 20 minutes.
Preheat your oven to 375°F. Beat together 1 large egg with a couple of teaspoons of water. Brush over chilled empanadas and then sprinkle with cinnamon sugar. Bake for about 15 minutes or until golden and crispy.
Enjoy with a little extra caramel sauce and a scoop of vanilla ice cream!