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CHOCOLATE PECAN CARAMELS

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1 cup butter, softened

1 1/2 cups pecans, coarsely chopped

1 cup semisweet chocolate chips

2 cups brown sugar, packed

1 cup light Karo syrup

1/4 cup water

1 can sweetened condensed milk

1 tsp. Watkins Vanilla

1 tsp. Watkins Caramel Extract

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