Fabulous Caramel Clusters

Heat oven to 300 degrees. Melt caramels with water in 3-quart heavy saucepan over low heat, stirring frequently until smooth. Add cereal and pecans; mix lightly until well coated. Spread into greased 10 x 15 inch baking pan. Bake 25 minutes, stirring after 15 minutes. Turn out onto greased waxed paper. Cool thoroughly; break apart.

Add ½ c. chocolate chips to cooled cereal mixture; mix lightly.

Microwave caramels and water in large bowl on high 2-3 minutes or until smooth, stirring every minute. Continue as directed.