This video teaches you
To melt caramels using a microwave, open up a bag of soft caramels, unwrap the individual candies, and place them in a microwave-safe dish. Next, add milk to the bowl, or if you’d like a richer treat, add heavy cream instead. Then, place the bowl in the microwave and heat the caramels on HIGH for 1 minute. After 1 minute, take the bowl out and stir the caramels with a rubber spatula. Cook the caramels for another 1 to 2 minutes, stirring after each minute. Finally, allow the caramel to cool off for a few minutes before using.
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How to Melt Caramels