Beat butter or margarine until creamy. Gradually add sugars, beat well. Add eggs and vanilla, beat well. Combine flour, baking soda and cocoa. Gradually add to butter mixture, beating well. Stir in 1/2 cup nuts (optional). Cover and chill at least 2 hours.

Preheat oven to 375 degrees F (190 degrees C). Combine remaining 1/2 cup nuts with the 1 tablespoon sugar. Divide the dough into 4 parts. Work with one part at each time, leaving the rest in the fridge. Divide each part into 12 pieces.

Quickly press each piece of dough around a chocolate covered caramel (Rolo-type candy). Roll into a ball. Dip one side into sugar. Place sugar side up 2 inches apart on baking sheets. Bake for 8 minutes. Let cool one minute. Remove to wire rack and cool completely.