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

Use a toothpick to dip each marshmallow into the warm caramel, ensuring it gets fully coated, then tap off excess caramel before placing it aside.

Roll each coated marshmallow in the Rice Krispies cereal, pressing lightly to ensure every inch is covered.

Place the coated marshmallows on a parchment-lined cookie sheet and allow to cool at room temperature for about 30 minutes.

If desired, drizzle melted chocolate over the cooled Marshmallow Rice Krispie Balls or sprinkle with chopped nuts for added flavor.