1 lb. caramels
1/2 c. hot water
1 c. sweet butter
1 c. confectioners' sugar

Place caramels and water in double boiler, heat and stir until a smooth cream is obtained. Allow to cool. Place butter in mixing bowl. Add sugar; mix at low speed to obtain a smooth paste. Mix at medium speed adding above cool caramel cream gradually. Note: If stiffer icing is desired, reduce amount of water.