Fannie Mae Caramels

4 cups sugar
2 cups light corn syrup
14 ounce can sweetened condensed milk
1 1/2 cups milk
1 cup whipping cream
1 cup butter
2 teas. vanilla
2 cups chopped walnuts or pecans

Lightly grease a 9" by 13" baking pan. In a large sauce pan, combine sugar, corn syrup, condensed milk, milk, cream and butter. Place over medium heat and stir occasionally with a wooden spoon until it comes to a boil. Attach a candy thermometer and continuously stir until temperature reaches 240F. Remove immediately and stir in vanilla and nuts. Pour into baking pan and allow to cool completely before cutting.
Cut into desired serving pieces. They can also be dipped in chocolate that has been melted in a double boiler. Dip one at a time and allow chocolate to harden.