Place the Milk Maid caramels between 2 sheets of waxed paper, then use a rolling pin to flatten them slightly. Separately, melt the chocolate chips in a heat-proof bowl placed atop a pot of simmering water, stirring constantly with a heatproof spatula until smooth. Remove the pot from burner, leaving the bowl on top to keep the chocolate soft. Pour the chopped nuts into a bowl. Dip each flattened caramel halfway into the melted chocolate, then into the nuts, turning it so that it is evenly coated. Place the caramels on a waxed paper-lined baking sheet and chill for 20 to 30 minutes. Makes 4 dozen.