Pay Day Candy Bars

Combine the first six ingredients in a sauce pan.
Cook over low heat until the caramel has melted and stirs smooth.
Add 3/4 cup powdered sugar and stir to mix in.
Reserve the remaining sugar.
Turn heat to medium high.
Using a candy thermometer, cook caramel mixture until exactly 230F while stirring often.
Remove from heat, let cool for a few minutes, and add remaining powdered sugar.
Use a hand mixer to beat in the sugar for a couple minutes.
Let candy cool for 20 minutes.
Divide candy into eight equal pieces and form each into 4 inch logs.
Place on wax paper and let cool for one hour.
In a double boiler, add remaining caramels and water.
Melt until smooth.
Remove from heat, but keep hot water under the caramel so it doesn't firm up.
Use a pastry brush to coat one of the logs with hot caramel.
Roll in peanuts in a shallow dish.
If any spots are not completely covered in peanuts, apply more caramel and stick back in peanuts. Repeat with the remaining logs.
Allow to cool completely before eating.