Unwrap the caramels and place them in a medium saucepan along with the sweetened condensed milk and butter. Heat over medium heat, stirring constantly for about 5–7 minutes until smooth and creamy.

Skewer each large marshmallow with a toothpick or skewer. Dip each marshmallow into the warm caramel mixture, allowing excess to drip back into the saucepan, about 1–2 minutes per marshmallow.

In a large bowl, pour in the Rice Krispies and carefully roll each caramel-coated marshmallow to coat fully and evenly for that delightful texture.

Place each coated marshmallow on a parchment-lined cookie sheet, leaving space between them. Allow to sit at room temperature for about 30 minutes until firm.

Serve immediately or store in an airtight container. They can be kept at room temperature for up to a week.