Moist Caramel Apple Cake

1 pkg. yellow cake mix
1 small pkg. vanilla flavor instant pudding
1 cup water
4 eggs
1/3 cup vegetable oil
3 apples, peeled, coarsely chopped
20 Kraft caramels, unwrapped
1/4 cup milk
Preheat oven to 350 degrees. Grease and flour a 12 cup fluted bundt pan. Beat cake mix, dry pudding mix, water, eggs and oil in large bowl with electric mixer on low speed until blended. Beat on high speed 2 min. Gently stir in apples. Pour into prepared pan.
Bake 50 min. to 1 hour or until toothpick inserted in center comes out clean. Cool 20 min.; remove from pan. Cool completely on wire rack.

Microwave caramels and milk in bowl on High 1 1/2 min. stirring every 30 sec., until blended. Cool 10 min. until slightly thickened. Drizzle over cake. Place caramels in the freezer for 5 min. before unwrapping--the plastic peels off in a cinch!