1. Place Styrofoam on a flat surface. Lightly coat large baking sheet with nonstick vegetable-oil cooking spray.
2. Remove stems from apples; wash and dry apples. Insert wooden stick or cinnamon stick into stem end of each apple.
3. Place unwrapped caramels in medium-size saucepan. Add the water; heat over medium-low heat, stirring occasionally, until caramels are melted and smooth.
4. Working quickly with one apple at a time, and keeping caramel over low heat, dip the apple into the caramel, turning to coat the apple completely; remove the apple from the caramel and gently shake, letting the excess caramel drip back into the saucepan. Pat pistachios onto top of apple and 1 inch down sides; place on prepared sheet. Refrigerate 10 minutes or until caramel is cool.
5. Meanwhile, heat chocolate in top of double boiler set over hot, not boiling, water, until melted and smooth. Drizzle chocolate over apples. Press apples sticks or cinnamon sticks into Styrofoam. Refrigerate until the chocolate hardens, about 1 hour. Remove from Styrofoam to foil cupcake liners. Be sure your gift receivers dont try to eat the cinnamon sticks if using them.