In a large bowl, combine cereal, pretzels, peanuts and caramels. In a medium microwave safe bowl, microwave morsels on medium high power for 1 minute; stir. Microwave an additional 10 to 20 second intervals, stirring until smooth.
Pour over cereal mixture; stir to coat evenly. Spread mixture in a greased 9x13 inch pan; cool for 30-45 minutes or until firm. Break into bit sized pieces.