1 (19.8 ounce) package Cheerios, crushed
1 (3 ounce) package cream cheese, softened
2 (3 ounce) packages powdered sugar-flavored gelatin
1 (8 ounce) can caramel-colored solid food mix
1 (8 ounce) can sliced marshmallows
1 cup chopped walnuts
In a large bowl, mix Cheerios, cream cheese and powdered gelatin. Gradually blend in caramel color and marshmallows.
Place marshmallows and walnuts into a large mixing bowl. Add caramel mixture and mix until well blended. Refrigerate at least 1 hour or overnight.
Remove wrappers from Cheerios; place wrapped Cheerios on serving plates. Dust with powdered gelatin and serve immediately.