- Make the Caramel Coating: In a medium saucepan over low heat, melt caramels, sweetened condensed milk, and butter. Stir frequently until smooth and fully combined. Remove from heat and set aside.
- Prepare the Marshmallow Mixture: In a large pot or Dutch oven, melt marshmallows over low heat. Stir constantly until melted evenly.
- Combine with Rice Krispies: Once marshmallows are melted and smooth, remove the pot from heat. Gradually stir in Rice Krispies cereal until well coated with the marshmallow mixture.
- Add Caramel Coating: Gently fold in the caramel coating mixture until evenly distributed. Be careful not to overmix.
- Transfer to Pan: Pour the mixture into the prepared baking dish. Use a spatula or your hands (lightly greased) to press the mixture evenly into the pan. Press down firmly.
- Cool and Cut: Allow the treats to cool completely in the pan. This usually takes about 2 hours at room temperature. Once cooled, use the parchment paper to lift the treats out of the pan and transfer them to a cutting board. Cut into squares or bars.
- Store Properly: Store the treats in an airtight container at room temperature for up to one week. If you need to keep them for a longer period, you can refrigerate them, but allow them to come to room temperature before serving for the best texture.