In 2-quart nonstick saucepan, heat water over high heat until hot. Dissolve coffee crystals in water.
Add milk, caramels and pecans to coffee. Heat over medium-low heat, stirring frequently, until caramels are melted and mixture is hot. Pour mixture into fondue pot and keep warm.
Arrange apples, pineapple and cake on serving plate. Use skewers or fondue forks to dip into fondue.