I have used the following to dip Marshmallows and roll in different toppings.

CARAMEL DIPPED MARSHMALLOWS

1 can sweetened ondensed milk
1/2 stick (1/4 cup) butter or margarine
1 pound of caramels

Place all indredients in double boiler and melt.

I dipped the marshmallows from the package, rolled in toppings and consumed.

Actually, I did it like fondue and let everyone dip and fix their own. The leftover caramel freezes well.