In a medium size bowl combine the crumb topping ingredients with a fork or pastry blender until it resembles small crumbs.
Refrigerate while you prepare the apple filling.
For the Apple Filling:
In a small bowl, combine melted butter and flour until well blended.
Add lemon juice, milk and vanilla and stir well. Stir in brown sugar, cinnamon, and salt.
Pour butter mixture over apples and toss to coat. Pour apple mixture into an 8x8-inch (or similar size) baking dish and spread into an even layer.
Add caramel bits and water to a microwave safe bowl. Microwave for about 1 1/2 minutes, stirring every 30 seconds, until the caramel bits are melted and smooth.
Drizzle 1/4 cup of caramel over the apples. Sprinkle crumb topping evenly over the top.
Bake for 30-35 minutes or until golden brown and top is set. Remove from oven and allow to cool for at least 10 minutes.
Drizzle remaining caramel on top right before serving.