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Insert 2 inches of a wooden stick into the stem end of each apple. Melt together the caramels and milk, stirring until smooth and creamy either in the microwave oven on lowest power or in a double boiler over medium heat. Dunk each apple into the warm caramel. As you lift the apple out of the caramel, turn it, allowing some caramel to drip back into the pot. immediately roll the caramel apple in the chopped nuts or sprinkles, and then place it on the prepared tray. Once the caramel has hardened slightly, set each finished apple inside a cupcake liner.
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