Combine the unwrapped caramels, butter, and sweetened condensed milk in a heavy bottomed sauce pan.

Heat over low heat, stirring frequently until the sweetened condensed milk is combined and the caramels have melted completely.

Pour the caramel apple dip into an airtight container and store at room temperature for up to 5 days.

Refrigerate the caramel apple dip for up to 1 week. Reheat in the microwave on 50% power for 15-30 seconds, stirring every 10 seconds or so. Add up to 1 teaspoon of water to thin out if necessary.