Place waxed paper on a cookie sheet; lightly coat waxed paper with vegetable cooking spray; set aside.

Melt caramels in water in double boiler over high heat, stirring often. As soon as the caramels melt, stir in nuts. Drop by teaspoonfuls on prepared waxed paper. Work as quickly as possible and keep caramel mixture over hot water to keep soft. Place cookie sheets in freezer for 30 minutes or in the refrigerator for 2 hours.

Melt chocolate and paraffin in double boiler over very hot, but not boiling water. (If using 8-ounce or 12-ounce chocolate bars, break into small pieces before melting. Use a potato peeler to make small shavings of the paraffin). With tongs or a toothpick, dip and spin each piece of chilled candy in melted chocolate and paraffin mixture; place on waxed paper. Allow candy to stand for at least 1 hour. Yield: 4½ to 5 dozen pieces.