Add butter and sweetened condensed milk to a saucepan. Heat on low until warm. Unwrap caramels and microwave for about 1 minute. Add to mixture on stove. Heat and stir until warm and smooth. Do not get it hot.
Stick a skewer into a marshmallow, cover with caramel mixture, but not too much. Then roll in Rice Krispies. Set on wax paper to set.
If mixture is too hot, the Rice Krispies slide down instead of setting up on the marshmallow.
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