Place the milk in a saucepan over medium-low heat. Add the caramels and stir for 5 minutes or until almost melted.
Remove from heat. Stir for a further 1-2 minutes or until the caramels melt and the mixture is well combined.
Pour among mugs and sprinkle with nutmeg. Add marshmallows or a dash of Kahlua, if desired, for the adults.
Soft Caramels Recipe:sooran.com