Step 1: Toast coconut in oven for 5 minutes at 350 degrees Fahrenheit; watch carefully to prevent burning.
Step 2: Melt the caramels in a double boiler with the condensed milk and butter (be careful, sugar burns). Stir to combine into a creamy sauce; stir a lot.
Step 3: Dip marshmallows in sauce quickly; do not leave a lot of sauce.
Step 4: Roll in toasted coconut or Rice Krispies.
Step 5: Let set on waxed paper.
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