Unwrap the caramels and place them in a medium saucepan along with the sweetened condensed milk and butter. Heat over medium heat, stirring constantly for about 5-7 minutes until smooth.

Using a toothpick or skewer, dip each marshmallow into the warm caramel mixture, ensuring it is fully coated. Allow excess caramel to drip off.

Pour the Rice Krispies into a large mixing bowl. Roll each caramel-coated marshmallow in the Rice Krispies until evenly coated.

Line a cookie sheet with parchment paper and place the coated marshmallows on the sheet. Allow to rest and set for about 30 minutes.

Serve in festive cupcake liners or stacked on a plate. Enjoy!