In a small bowl, mix together the sugar, cinnamon, nutmeg and allspice. Toss apple pieces in the mixture until well coated.
In the top of a double boiler, combine the caramel candies and water. Heat, stirring occasionally until melted and smooth. Place walnuts onto a tray.
Using a fork or toothpick, dip apple pieces into the caramel, then drop them into the walnuts. Roll them around until coated. Place onto a waxed paper lined cookie sheet, and refrigerate until set, about 10 minutes.
