In large microwave safe bowl combine caramels, 1/2 cup peanut butter and water and heat on high 3 minutes or until melted. Stir until smooth.
Add kix cereal and stir until all of the cereal is mixed through.
Drop by heaping teaspoonsful onto waxed paper.
For icing melt chocolate chips, Crisco, and peanut butter until melted. Mix until smooth.
Spread icing over top of cookies. Enjoy!