Wash and dry apples. This is one of the most important parts, the apples need to be very dry.

Combine caramels, vanilla and water in a saucepan and cook over low heat stirring constantly until caramels melt. Insert craft sticks into apples and dip apples into caramel mixture. Place caramel apples into buttered wax paper surface (make sure to place the wax paper on something hard and flat like a cutting board) and refrigerate until set. Double or triple recipe for more apples.