Caramel Morsel Bars

Directions

1. 1
   Melt caramels with water in a saucepan over low heat. Stir frequently till caramels are melted and sauce is smooth.
2. 2
   Toss cereal and peanuts together in a bowl. Pour the melted caramel sauce over the mixture and toss until well coated.
3. 3
   With buttered fingers, press the mixture into a greased 13 x 9 inch baking pan. Sprinkle chocolate and butterscotch chips on top and place in a 200F oven for about 5 minutes or until chips are softened. Spread the softened chips to blend slightly and form a frosting over the top. Cool and cut into bars. Cut into 30 bars or in sizes as desired.