Unwrap caramels and place in a double boiler. Add water. Cover boiler with lid and bring water in lower pot to a boil. Once the water comes to a boil, remove lid, and with a wooden spoon, stir caramels constantly until smooth.
Using a food processor, chop peanuts until fine, but not pasty.
Wash and dry grapes.
Place a toothpick in a grape, dip in caramel, let excess drip off for a second. Dip bottom into the chopped peanuts. Place directly on a platter if serving soon, or on parchment paper for refrigeration.
If the caramel becomes too hard, reheat over double boiler until smooth again.
These may be made a day in advance. Grapes should be slightly chilled for easy lifting from a platter.
Watch them disappear!
Based on featured item in Jo and Sue blogspot.