1. In large saucepan, combine caramels and cream. Cook and stir over medium-low heat for 5 to 10 minutes or until smooth. Remove from heat.

2. Stir in vanilla. Add cereal. Stir until well coated.

3. Using a lightly buttered spatula or wax paper, evenly press mixture into 39 x 25 x 2.5 cm (15 x 10 x 1-inch) pan coated with cooking spray. Cool. Using cookie cutters coated with cooking spray cut eight 5.5 cm (2-1/4-inch) large circles, eight 2.7 cm (1-3/4-inch) medium circles, eight 2.5 cm (1-inch) small circles and twenty-four 2 cm (3/4-inch) mini circles.

4. For each teddy bear, place one large circle adjacent to a medium circle; gently press together. Halve one of the mini circles and use for ears. Attach two mini circles for the feet. Place a small circle on the medium circle for the nose.

5. Decorate with icing (use food colouring for desired colours) and candies. Best if served the same day.

MICROWAVE METHOD:

1. In microwave-safe bowl, heat caramels and cream on HIGH for 3 minutes, stirring every minute. Stir until smooth. Follow steps 2 through 5 above. Microwave cooking times may vary.

TIP: Store no more than 2 days at room temperature in an airtight container.

In keeping with good allergy practices, we remind you to be aware of allergens and to check labels on any packaged goods used. This recipe has been tested using Kellogg's* products. Results with other products may vary.