Combine the caramels and the water in a saucepan and melt over low heat, stirring
frequently, or in a covered dish in a microwave on HIGH for 1 1/2 minutes.
Dip the pretzel nuggets, a few at a time, into the caramel and remove with a
fork to the greased cookie sheet. Refrigerate until caramel is firm.
Melt 3 ounces of the chocolate. Remove from heat.
While the chocolate is still hot, mix the remaining 1 ounce of chocolate into
the melted chocolate, in two additions, stirring until each addition is completely
melted before adding the next. Lift the caramels from the sheet and dip, one at
a time, into the chocolate. Coat completely and lift with a small fork.
Shake off excess chocolate by rapping the fork on the edge of the bowl lightly.
Remove any drips from the bottom by running the fork across the edge of the bowl.
Slide the candy onto a cookie sheet lined with parchment paper or wax paper. Allow
to cool until solid. Let chocolate set at room temperature or in the refrigerator.