Wash and dry apples. Insert cinnamon stick in each stem end, using a pair of kitchen shears to make holes. Set aside. Combine sugar and cinnamon. Set aside. Melt butter in large skillet. Add peanuts, brown sugar and cinnamon. Cook over medium heat, stirring constantly 4 minutes. Spread mixture onto a baking sheet lined with buttered waxed paper. Cool. Break peanut mixture into small pieces. Place in a pie plate or shallow container. Combine caramels and water in a large microwave safe bowl. Microwave on high for 3 minutes or until caramels melt. Stir in peanut butter and peanut butter morsels, stirring until smooth. Dip apples into caramel mixture, covering completely. Use a spoon to help cover. Sprinkle stem end with cinnamon sugar. Roll bottom half in peanut candy mixture. Place apples on greased baking sheet. Chill. Decorate with ribbon. Yield: 8 apples.