In a microwave safe bowl, combine the caramels and water. Microwave, uncovered, on high for 1 minute; stir. Microwave 30-45 seconds longer or until the caramels are melted.
Insert wooden sticks into apples; dip apples into the caramel mixture, turning to coat. Coat with nuts; set on waxed paper to cool.
Melt chocolate chips and shortening; drizzle over apples. Sprinkle with toffee bits. Set on waxed paper to cool. Cut into wedges to serve.
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