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Caramel Marshmallow Apples

1 package (14 oz) caramels
1 cup miniature marshmallows
1 tbsp. water
5 or 6 small apples
Wooden skewers

Line baking sheet with buttered waxed paper; set aside. Combine caramels, marshmallows and water in medium saucepan. Cook over medium heat, stirring constantly, until caramels melt. Cool slightly while preparing apples. Rinse and dry apples. Insert skewers into apples. Dip each apple in caramel mixture, coating apples. Place on prepared sheet. Refrigerate until firm. For variety roll apples in crushed peanuts or drizzle with melted chocolate.

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