Salted Peanut Rolls

Line a cookie sheet with waxed paper. In medium bowl, combine 1/2 cup of the powdered sugar with marshamallow creme; blend thoroughly. Knead in remaining powdered sugar. Divide mixture into 4 parts. Form each part into rope 1/2" in diameter. Cut into pieces 1-1/2" long. Place on waxed paper-lined cookie sheet. Freeze about 20 minutes or until firm. Meanwhile, in medium saucepan over low heat, heat caramels and water until caramels are melted, stirring occasionally. Remove from heat. Dip frozen marshmallow pieces into caramel mixture; roll in peanuts. Place on waxed paper-lined cookie sheet. Freeze until set. Store in covered container in refrigerator.