Freeze marshmallows till firm. Combine caramels, margarine and milk in saucepan. Cook on medium heat until caramels are melted, stirring till smooth. Remove from heat.
Take a few marshmallows at a time from freezer. Stick a toothpick into each marshmallow. Dip into caramel mixture; coat with cereal. Place on waxed paper until set. May freeze until serving time.
Not a NESTLÉ®-tested recipe.