1 In small saucepan over low heat, combine caramels and milk, stirring frequently, until caramels are completely melted and smooth. Set aside.2 In food processor, combine walnut pieces and 1/4 cup of the sugar; process until it resembles coarse crumbs (do not over process). Stir in melted butter.3 Press mixture into bottom and half way up sides of a 9 inch spring-form pan. Bake in 325°F oven for 15 minutes.4 Meanwhile, beat cream cheese with remaining 3/4 cup sugar. Add eggs, beating one at a time, just until well blended. Stir in 1/4 cup of the rum or bourbon.5 Pour cream cheese mixture into walnut crust. Drizzle 1/3 cup of the caramel sauce on top; gently swirl with knife. Stir remaining bourbon into caramel sauce. Cover and refrigerate until ready to use.6 Bake in 325° F oven for 1 hour. Turn oven off; leaving cheesecake in oven without opening door (to prevent cracking) for an additional hour.7 Transfer to rack to cool completely. Cover and refrigerate 4 hours or up to 1 day.8 To serve, gently warm sauce, stirring in walnut halves. Serve over slices of cheesecake. YIELD: 12 servings