Insert a metal spoon into the center of each apple. Place caramels in a metal or glass bowl over a pan of simmering water and melt until smooth, about 15 minutes. Roll the apples in the melted caramel to coat evenly.
Then roll the apples in the crushed cereal. Allow apples to cool on waxed paper. To serve, cut the apples into wedges and serve with the ice cream and sauces.