Unwrap the caramels and put them in a large pot over medium-low heat.
Add water and stir until caramels are melted.
Meanwhile, wash and dry the apples and have the kids put a popsicle stick into the stem end of each one.
Spread a sheet of waxed paper on the counter and spray it with cooking spray. (Make sure it's big enough to hold ten apples.)
Dip the apples one at a time into the melted caramel to coat.
If desired, roll the apples in candy, crushed cookies, sprinkles or nuts.
Place the apples stick side up on the waxed paper and allow to cool for 15 minutes before eating.