Remove the stems from the apples and replace them with popsicle sticks, wooden sticks, or reusable plastic treat sticks.
Place a piece of wax paper or parchment paper over a baking sheet. Spread the softened butter over the waxed paper and set aside.
Boil water in a medium saucepan. Dip apples, one at a time, into boiling water for 10 seconds; wipe dry. This process helps to remove the wax off the apples, which in turn helps the caramel to stick to the apples.
Place the caramel apple toppings (toffee bits, mini M&M's, butter-finger bits, and chopped peanuts) into their own individual bowls.
Unwrap caramels and add them to a small saucepan, along with 2 tablespoons of water. Place the saucepan over low heat. Stir frequently until the caramel is completely melted and smooth.
Dip cold apples, one at a time, into the caramel sauce. Turn to coat, letting the excess caramel drip off. Quickly dip into the topping of choice, while turning the apple.
Place apples on waxed paper and allow to set for approximately 30 minutes.