In a microwave-safe bowl, combine the caramels, chocolate chips, water, cinnamon and vanilla. Microwave, uncovered, on high for 1-1/2 minutes; stir. Microwave 30-60 seconds longer or until caramels are melted.
Insert Popsicle sticks into the apples; dip into caramel mixture, turning to coat. Roll in or press on desired toppings. Place on waxed paper; let stand until set.