Caramel Peanut Eyeballs

3 cups finely chopped dry roasted peanuts
1 (14 ounce) can sweetened condensed milk
1 teaspoon vanilla extract
1/2 pound chocolate confectioners' coating
Red M&Ms

In a heavy saucepan, combine nuts, sweetened condensed milk and vanilla extract. Over medium heat, cook and stir 8 to 10 minutes or until mixture forms ball around spoon and pulls away from side of pan. Cool for 10 minutes. Chill if desired.

Shape into 1-inch balls.

In a heavy saucepan over low heat, melt confectioners' coating. With a wooden toothpick, dip each ball into melted coating and place on wax paper. Immediately press 1 red M&M into center of each ball.

Store covered at room temperature or in refrigerator.

Makes about 4 1/2 dozen.