In a medium sized mixing bowl, combine the powdered sugar and marshmallow creme. Stir until mixture turns into a dough like consistency.
Line a baking sheet with parchment paper. Roll the marshmallow and powdered sugar mixture into 6 like sized logs. Refrigerate overnight.
Finely chop the pecans. Leave them on the cutting board so you can roll the filling in them.
Now melt your caramel. Use a double boiler and in the bowl add the caramel pieces and water. Stir frequently until the caramel is all the way melted and flows.
Cut the logs into 1 ½-inch pieces. Using tongs, dip the piece into the caramel and quickly coat it and then transfer to the chopped pecans. (This step needs to be done very quickly or else the marshmallow mixture will melt, and you won't be able to grab it out of the hot caramel.)
Roll the dipped caramel piece in the pecans until it is fully covered and not sticky to the touch.
Transfer to a piece of foil to rest so the caramel can cool.
Once the caramel has cooled, serve or store in an airtight container.
