Add flour, sugar and salt to bowl of a food processor and pulse to combine. Add the cold butter, eggs and water and pulse several times, until a dough forms.
Remove dough from bowl and transfer to a floured surface. Use your hands to knead the dough a few times. Divide dough into 2 equal sized balls, flatten them into thick discs, wrap with plastic wrap, and chill in the refrigerator for at least 30 minutes.
Make Apple Filling
Peel, core and dice the apples. Transfer diced apples to a large bowl, and squeeze lemon juice over top. Add 2 tbsp flour, cinnamon and caramel bits, then toss to combine. Set aside.
Set oven to 375° F.
Make Empanadas
Roll out the dough on a floured surface into a thin sheet (1/8-inch thickness) and use 6-inch round biscuit/cookie cutter to cut 12 empanada discs. Dough scraps may be gathered and rerolled as necessary. Place discs on a rimmed baking sheet lined with silicone baking mat or parchment paper.
Place 1/4 cup apple filling in center of each empanada disc. Note: Be careful not to add too much filling, as it will tear the dough.
Dip your index finger into water and moisten outer rim of each disc, then fold each disc in half to enclose the filling. Gently press edges of dough with your fingers to seal the empanada closed, then use tines of a fork to crimp edges together. Refrigerate the empanadas for at least 30 minutes before baking.
Brush tops of each apple empanada with egg wash and sprinkle with sanding sugar crystals. Bake the empanadas for 20 minutes, or until golden brown.
Video
Notes
25 unwrapped Kraft caramels may be substituted for 1 cup Kraft caramel bits. Cut these into smaller pieces if using. If you'll be using a different brand of caramel candies, keep in mind that you'll want 5 ounces of caramels for this recipe. Alternatively, you could make and use homemade caramel or use Nestle Pumpkin Morsels.
=============================To Thicken Thin Caramel SauceIf homemade caramel seems too runny, allow it to cool and thicken. Alternatively, place 1 cup caramel in saucepan over medium heat and gently stir in 1 teaspoon cornstarch and 1/2 teaspoon water. Simmer contents over medium heat until sauce reaches desired consistency.