1 (14 oz.) bag caramels
3 tbsp. water
4 to 5 c. halved pecans
1 (12 oz.) milk chocolate chips
1 (14 oz.) can sweetened condensed milk
1 tsp. vanilla

In heavy saucepan over low heat, melt caramels and water. Keep caramel mixture over hot water, drop by half teaspoonfuls onto greased cookie sheet. Arrange 3 nuts on each caramel drop.

In saucepan over low heat, melt chocolate chips, sweetened condensed milk and vanilla. Remove from heat, hold over hot water and drop by teaspoonfuls over nut cluster. Chill 2 hours or until firm. Store in refrigerator.