DIRECTIONS

Line two baking sheets with waxed paper; grease the paper and set aside. In a large heavy saucepan, combine the caramels and water; cook and stir over low heat until smooth. Stir in pecans and cereal until coated. Drop by teaspoonfuls onto prepared pans. Refrigerate for 10 minutes or until firm.
    Meanwhile, melt chocolate chips and shortening; stir until smooth. Dip candy into chocolate, coating all sides; place on prepared pans. Refrigerate until set. Store in an airtight container. Yield: about 2 pounds.