Butterscotch Caramel Salty Dogs

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1 (12 ounce) package butterscotch chips

1/2 cup instant nonfat dry milk powder

1 cup marshmallow cream

1 teaspoon vanilla extract

2 tablespoons milk

2 cups salted peanuts , coarsely chopped

22-25 individual chewy caramel candies, such as Brach's

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