Caramel squares melt quickly for use as a dip or topping. The caramels come individually wrapped in the package, so you can use as many squares as you need while leaving the rest wrapped for later use. Melted caramel sauce provides the traditional coating for candy apples. It remains sticky once it's melted, so you can roll it in nuts or candy sprinkles once you coat the apple or food. You can also pour the melted caramel sauce over brownies or cookies to make a decadent dessert.
Fill the bottom of a double boiler with 2 to 3 inches of water. Use a medium-sized saucepan if you don't have a double boiler.
Set the top of the double boiler in the bottom pot. Set a metal bowl on top the medium-sized pot if you aren't using a double boiler. The water in the bottom pot shouldn't touch the top pot or bowl.
Heat the pot over medium-high heat until the water begins to boil. Lower the heat to medium to maintain a steady simmer.
Place the unwrapped caramels in the top pot or bowl. Add the water or milk to the caramels.
Stir the caramels constantly as they begin to melt, combining the water or milk with the melting candies. Continue to cook until the caramels reach the desired consistency.
Remove the pot or bowl from the bottom pot. Continue to stir the caramel sauce until it cools to prevent it from scorching to the bottom of the hot bowl.
Do not allow the water to boil out of the bottom pot. Add more water if the level drops due to evaporation.