Insert sticks into apples; set aside. Combine caramels and milk in a microwave-safe bowl. Microwave on high setting, uncovered for 2 minutes, stirring once. Allow to cool briefly. Roll each apple quickly in caramel, turning to coat. Set apples to dry on lightly greased wax paper. When partially set, roll in toppings, if desired.
Use small apples to make caramel apples for party favors. You'll be able to make 10 to 12 mini apples with this recipe.