In a large bowl, combine pretzels, marshmallows and peanuts; set aside.
Combine sugar, half and half and butter in a saucepan; bring to a boil over medium
heat, stirring constantly. Add butterscotch and let stand for 1 minute to soften
pieces; stir until well combined. Let stand for 5 minutes.
Remove from heat. Pour butterscotch over pretzel mixture and stir until everything
is well coated.
Drop by rounded teaspoons on baking sheets lined with wax paper.