COMBINE 1 1/2 cups morsels, caramels and evaporated milk in medium heavy-duty saucepan. Cook over low heat, stirring constantly until morsels and caramels are melted and mixture is smooth. Serve warm over ice cream; sprinkle with remaining morsels.
NOTE: If any sauce is left over, cover and refrigerate; reheat in heavy saucepan over low heat.
Makes 1 3/4 cups.