Line a cookie sheet with waxed paper.
Place the caramels and hot water in top of double boiler. Heat over simmering
water, stirring often, until caramels are melted.
Use a fork or thick skewer to hold marshmallow; dip into melted caramel and
turn to coat entire surface.
Roll the marshmallow in the toasted coconut (or pecans).
Place each on the waxed paper.
Work quickly to coat each marshmallow.
Stir the caramel mixture occasionally to keep it smooth.
When all are finished, place in a cool place until caramel is firm.
Store in a covered container in a cool place.
Yield: 32 covered marshmallows.
Double this recipe if you wish, remembering to work quickly so caramel will
not cool too soon.