Caramel Popcorn Balls

(Courtesy of Taste of Home)

Ingredients:
2 quarts popped popcorn
3 c. crisp rice cereal
42 caramels
3 Tbsp. water
1 c. salted peanuts
1/8 tsp. salt

Directions:
Combine popcorn and cereal in a large bowl; set aside.  In a heavy saucepan over low heat or in a microwave-safe dish, heat caramels and water until the caramels are melted.  Stir in peanuts and salt; mix well.  Pour over popcorn mixture and toss to coat.  With buttered hands, shape into 3 inch balls.  Reshape if necessary when partially cooled.