Wash and dry your apples. They have to be dry, or the caramel will not stick. Then, push a wooden craft stick into the top of each apple after removing the stem.
Combine caramels, vanilla and water in a saucepan and cook over low heat stirring constantly until caramels melt.
Roll in toppings if desired, then let cool on a parchment-lined baking sheet coated with cooking spray. Store leftover dipped apples in the refrigerator.