1 (14 ounce) package individually wrapped caramels, unwrapped
1 tablespoon water
15 pretzel rods
1/2 (14 ounce) package candy-coated chocolate pieces
1 1/2 cups chopped peanuts

In a microwave safe dish, combine caramels and water. Microwave for 2 to 2 1/2 minutes or until smooth, stirring after each minute.
Dip a pretzel rod into melted caramel. Reserve about an inch at the end to use as a handle, and spread smooth with a spatula or the back of a spoon. Attach 12 chocolate pieces, then roll in chopped peanuts. Place on wax paper until set.

NOTE
If caramel becomes difficult to work with about halfway through dipping, you can add 1/2 teaspoon water, and microwave for another 30 seconds; but don't keep microwaving or the caramel gets ruined.