PREPARATION:

1. Spray baking sheet with nonstick cooking spray; set aside. Wash and dry apples; insert wooden sticks into stem ends. Place nuts in shallow dish.
2. Combine caramels and water in small saucepan. Cook over medium heat, stirring constantly, until caramels are melted.
3. Dip apples, 1 at a time, into caramel mixture, turning to cover completely. Remove excess caramel mixture by scraping apple bottoms across rim of saucepan. Roll bottom half of apples in walnuts. Place on prepared baking sheet. Refrigerate at least 15 minutes.
4. Place chocolate and shortening in small microwavable bowl. Microwave on HIGH 1 to 2 minutes; stir until chips are melted. Drizzle chocolate decoratively over apples. Refrigerate 10 minutes or until chocolate is firm. Wrap apples individually; store in refrigerator.