Aunt Joyce's Peanutty Caramel Bars

1 pkg (14 oz) caramels
¼ cup water
¾ cup peanut butter, divided
4 cups cheerios
1 cup salted peanuts
1 cup semisweet or milk chocolate chips
½ cup butter or margarine

In a large microwave-safe bowl, heat caramels, water, and ½ cup peanut butter on high for 1 minute, stir. Microwave 1-2 minutes longer or until melted. Add cereal and peanuts, stir until coated. Spread into a greased 13x9 in pan; set aside.In another microwave-safe bowl, heat chips, butter and remaining peanut butter on high for 30-60 seconds or until melted. Spread over cereal mixture, Refrigerate before cutting. Yield about 3 dozen