Line baking sheet with parchment paper, and butter the parchment paper.

Insert 1 wooden craft stick into stem end of each apple.

Microwave caramels and water in large, microwave-safe bowl on high power for 2 minutes; stir. Microwave at additional 10 to 20 second intervals, stirring until smooth.

Dip each apple in melted caramel; scrape excess caramel from bottoms. Quickly roll bottom half of apples in chopped candy, then place on prepared tray.

Refrigerate for 45 minutes or until set. Store apples in refrigerator in airtight container. Apples are best if they are served the same day as they are prepared.

Cook's Note: If caramel becomes too firm, return to microwave oven for 20 to 30 seconds or until dipping consistency.