Stir in: 2 tsp. vanilla

Shape into small balls. Bake 350 degrees 15 minutes (until light brown). Insert a toothpick into each one as soon as they are taken from the oven. Let cool.

Melt 72 light caramels and 1 cup canned milk in double boiler. Dip cookies in caramel mix; sprinkle with nuts. Place in candy cups.