2 qts. (8 c.) popped popcorn
3 c. crisp rice cereal
12 oz. (42) vanilla caramels
3 tbsp. water
1 c. salted peanuts

In very large bowl combine popcorn and cereal. In top of double boiler combine caramels and water. Cook over hot water until melted, stirring occasionally. Remove from heat. Stir in peanuts. Pour over popcorn and cereal. Toss until well coated. With buttered fingers, quickly shape into balls.