Fill medium pot halfway with water. Cover pot with metal bowl that fits snugly over pot, ensuring that bowl’s bottom is not submerged in water. Bring water to a boil over medium-high heat.
Add caramels and milk to bowl, stirring to ensure even melting. When caramels are halfway melted, reduce heat to medium and continue stirring. When milk is fully incorporated and caramels are melted, fondue is done.
Serve fondue with 1/2 cup sliced fruit per person.
Good idea: You can also dip strawberries or dried apricots into fondue and chill in the refrigerator to make delicious caramel-covered fruits.