Kaeppeler finished at the top of the 53-strong field and was duly crowned by the 2011 winner of the pageant, Teresa Scanlan.
"I was crying even before my name was called," Kaeppeler said, "It was just surreal to have this honor."
The 23-year-old also won a $50,000 scholarship and a further $2,000 for her operatic vocal performance of "Il Bacio" in the talent competition. Kaeppeler impressed the judges with her answer on the political stand of a beauty queen.
"Miss America represents everyone, so I think the message to political candidates is that they represent everyone as well," Kaeppeler said, "And so in these economic times, we need to be looking forward to what America needs, and I think Miss America needs to represent all."