1 bag Kraft caramels, unwrapped
1 c. butter
1 can sweetened condensed milk
1 lg. bag marshmallows
2 (16 oz.) bag coconut or Rice Krispies cereal

Melt caramels in double boiler with butter and sweetened condensed milk. Dip marshmallows in caramel mixture and roll in coconut or cereal. Store in refrigerator. Freeze well.