INSERT 1 wooden pop stick (from bag of caramels) into stem end of each apple.
MICROWAVE caramels and 2 Tbsp. water in deep microwavable bowl on HIGH 2 to 3 minutes or until caramels are completely melted, stirring after each minute. Dip apples into hot caramel mixture; turn until well coated. Scrape excess caramel mixture from bottoms of apples. Roll bottom halves in peanuts. Place on greased tray. Refrigerate at least 15 minutes.
MICROWAVE chocolate and butter in deep microwavable bowl on HIGH 2 to 3 minutes until chocolate is almost melted, stirring after each minute. Stir until chocolate is completely melted. Drizzle chocolate generously over apples or dip bottom of apple into melted chocolate. Let stand on wax paper-lined tray until chocolate is firm.
If the apples you purchase are waxed, be sure to wash the wax off completely before dipping in caramel.