Caramel Apple Cake

1 pkg. yellow cake mix
1 pkg. Vanilla or French Vanilla Instant pudding
1 cup water
4 eggs
1/3 cup vegetable oil
3 Granny Smith apples, peeled, and coarsely chopped
20 caramels, unwrapped
1/4 cup milk
Preheat oven to 350. Grease and flour a bundt pan. Beat cake mix, dry pudding mix, water, eggs and oil in large bowl until well blended. Gently stir in apples. Pour into pan. Bake 50 min to 60 min until inserted toothpick comes out clean. Cool 20 min and remove from pan. Cool completely on wire rack.
Microwave caramels and milk on HIGH for 90 seconds, stirring every 30 seconds, until blended. Cool 10 min, until slightly thickened. Drizzle over cake.