In a medium pot add butter and mini marshmallows and melt on medium heat stirring constantly. When mixture is smooth, add vanilla.
Remove pot from heat and add cereal and mix well. Pour this into the greased pan.
Spread and smooth the mixture using a spatula or wax paper. Put in fridge and chill.
In another pot, add unwrapped caramels and water and cook on low heat, stirring constantly until the mixture is smooth. Pour this over your Rice Krispies mixture and spread evenly. Put back in fridge to chill.
For last layer, add chocolate chips to a small pot on low heat, stirring constantly until melted and smooth. Add peanut butter and mix until smooth. Remove from heat and add to the caramel layer. Place back in fridge to chill for at least 1 hour.
Cut bars while cold but set out at least half hour before eating so they aren't as hard and cold. ENJOY!