In a medium size glass bowl, melt the butterscotch chips in the microwave on high for 2 minutes. Remove bowl and stir in the marshmallow cream and powdered milk. Add the vanilla and mix well. The mixture will be very thick. At this point use your hands and knead the mixture almost like bread dough. Roll the mixture into walnut size pieces and shape like your little finger. Place finger shapes onto waxed paper to set.
In a separate bowl, melt the caramels and milk together in the microwave on high for 1 1/2 to 2 minutes. Remove from microwave and stir well. Roll set fingers into the caramel, making sure the caramel is not too hot and will burn your fingers. Once rolled in caramel, immediately roll in chopped nuts, and place back on the waxed paper to harden.