Preheat oven to 350°F. Line an 8x8 square pan with foil or parchment paper, leaving a couple inches of overhang on two sides. Lightly grease the foil/parchment. Unwrap the 8oz of caramels needed for the brownies and place them in a microwave safe bowl along with 2½ tablespoons cream/half and half. Set aside.
Combine granulated sugar and hot butter in a large bowl. Stir it briefly then allow it to sit undisturbed for 5 minutes. The heat from the butter will begin to dissolve the sugar (this helps make a shiny/crackly crust), the sugar will not fully dissolve. After 5 minutes, whisk the butter and sugar vigorously for 30 seconds. Add eggs, water, and vanilla extract, whisking again for about 30 seconds. Tap all the excess batter off the whisk and remove the whisk from the bowl.
Sprinkle cocoa powder, powdered sugar, flour, salt, and chocolate chips over the wet ingredients. Use a rubber/silicone spatula or wooden spoon to stir the mixture until it is glossy and well combined.
Scoop half of the batter into the prepared pan and spread into an even layer.
Place the bowl of caramels and cream in the microwave and cook in 20-30 second increments, stirring occasionally, until the caramels are melted and completely smooth. Pour the caramel sauce evenly over the brownie batter in the pan.
Add the remaining brownie batter on top of the caramel. I pour/drop spoonfuls of batter all around the pan, then carefully press/spread it into an even layer. Make sure all the caramel is covered and try not mix the caramel and brownie batter (this will ensure distinct layers).
Bake for 28-33 minutes, until the brownies are dry on top, no longer jiggly, and the very center is still a tiny bit underdone. Be careful not to over bake. Remove from the oven and place on a cooling rack to cool for 30 minutes before proceeding with the topping.