Beat cream cheese using a mixer on low speed until creamy.
Slowly add in the powdered sugar and continue mixing.
Add caramel sauce and vanilla and mix until combined.
Fold in the chopped baking chips.
Lay out a piece of plastic wrap and scoop the cheese ball mixture onto the plastic wrap.
Pull up the sides of the plastic wrap and cover with an additional piece of plastic wrap.
Shape into a ball and chill for 2 hours or until firm.
If decorating as a basketball, place cheese ball on a plate. Press baking chips into the cheese ball and use chocolate chips to make the black ribs around the ball.
Otherwise, simply roll cheese ball in caramel baking chips until covered.