3 cups confectioners' sugar
1 (7 ounce) jar Marshmallow Cr?e
1 teaspoon vanilla extract
1 (14 ounce) bag caramels
3 tablespoons water
1 1/2 cups chopped pecans

In a bowl, combine sugar, Marshmallow Cr?e and vanilla extract. Knead until smooth (mixture will be dry). Shape into six 4 1/2 x 1 1/4-inch logs. Chill overnight.

In the top of a double boiler over boiling water, cook and stir caramels and water until smooth. Dip logs into caramel; roll in pecans. Chill for 2 hours.

Cut into 1/3-inch slices.

Makes about 6 1/2 dozen.