Fannie Mae Caramels

4 cups granulated sugar
2 cups light corn syrup
1(14 ounce) can sweetened condensed milk
1 1/2 cups milk
1 cup whipping cream
1 cup butter
2 teaspoons vanilla extract
2 cups walnuts
Tempered dipping chocolate or wax paper cut into rectangles

Butter a 13 x 9-inch baking pan.

In a heavy 6-quart Dutch oven, combine sugar, corn syrup, sweetened condensed milk, milk, whipping cream and butter. Place over medium heat and stir occasionally with wooden spoon until comes to boil. Clip on candy thermometer. Cook, stirring constantly, until candy reaches 240 degrees F or soft ball stage.

Remove from heat. Stir in vanilla extract and nuts. Pour without scraping into pan. Allow to stand overnight.

Cut into 1-inch squares. Wrap in wax paper or dip in chocolate.

Yield: about 110 pieces