Wash and dry apples. Insert stick into stem end of each apple. Microwave 1 pkg. of caramels and 2 T. water in small, deep microwave bowl on high 2 1/2-3 1/2 minutes or until smooth, stirring every minute. (If caramel sauce is too thin, let stand about 2 minutes before dipping apples.) Dip apples into hot caramel sauce; turn until coated. Scrape excess sauce from bottom of apples. Place on greased waxed paper. Refrigerate 1-2 hours.
After refrigerating, repeat microwaving and dipping direction with remaining caramels and 2 T. water. Refrigerate 1-2 hours; decorate as desired after refrigeration. Store decorated apples in refrigerator. Let stand at room temperature 15 minutes before serving to allow caramel to soften.
Caramel Pecan - Roll warm caramel apple in chopped pecans. Drizzle with melted chocolate, if desired.
Double Chocolate - Drizzle cooled caramel apple first with melted white chocolate and then with dark chocolate.
Coconut Almond - Roll warm caramel apple in coconut and sliced almonds. Cool, then dip bottom of apple in melted chocolate.
To drizzle melted chocolate: Pour melted chocolate into a sealable bag. Seal well, pushing out any excess air. With scissors, carefully cut corner of bag to make a very small hole. Drizzle chocolate while turning apple.