Remove the stem from the apples and replace with a popsicle stick (or reusable treat stick).
Place a piece of wax paper over a baking sheet. Spread the softened butter over the waxed paper and set aside.
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 toppings (toffee bits, mini M&M's, butterfinger bits, and chopped peanuts) into their own individual bowls.
Unwrap the caramels and add to a small saucepan, along with 2 tablespoons of water. Place over low heat and allow to melt, stirring frequently.
Dip apples, one at a time, into the caramel sauce; turn to coat. Quickly dip into topping of choice, while turning. If there are bare spots, fill with additional topping.
Place apples on waxed paper and allow to set for approximately 30 minutes.