Preheat your oven to 350°F (175°C) and line two baking sheets with parchment paper.

In a medium bowl, whisk together the flour, baking soda, baking powder, and salt.

Melt half a cup of butterscotch chips in a microwave-safe bowl until smooth.

Cream together the softened butter, granulated sugar, and light brown sugar until light and fluffy.

Mix in the melted butterscotch, eggs, vanilla extract, butter extract, optional rum extract, and cream soda.

Gradually add the dry mixture into the wet batter until just combined.

Chill the dough covered in plastic wrap for at least 30 minutes.

Scoop the dough and roll into balls, placing them on the baking sheets.

Bake for 10-12 minutes until edges are set and centers are puffy.

Cool cookies on the baking sheets for 5 minutes before transferring to a wire rack.

For the frosting, beat together softened butter, sifted powdered sugar, remaining melted butterscotch, and vanilla extract.

Frost the cooled cookies and optionally drizzle butterscotch sauce on top.