In a microwave safe dish, combine caramels and water. Microwave for 2 to 2 1/2 minutes or until smooth, stirring after each minute.
Dip a pretzel rod into melted caramel. Reserve about an inch at the end to use as a handle, and spread smooth with a spatula or the back of a spoon. Attach 12 chocolate pieces, then roll in chopped peanuts. Place on wax paper until set.
