1 (14-ounce) package caramels, unwrapped
2 tablespoons butter or margarine
2 tablespoons water
3 cups pecan halves
1 cup (6 ounces) semisweet chocolate morsels
8 (2-ounce) vanilla candy coating squares
Cook first 3 ingredients in a heavy saucepan over low heat, stirring constantly until smooth. Stir in pecan halves. Cool in pan 5 minutes.
Drop by tablespoonfuls onto lightly greased wax paper. Chill 1 hour, or freeze 20 minutes until firm.
Melt morsels and candy coating in a heavy saucepan over low heat, stirring until smooth. Dip caramel candies into chocolate mixture, allowing excess to drip; place on lightly greased wax paper. Let stand until firm.
Makes 4 dozen.