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Place butterscotch candies in large resealable plastic bag. Close tightly. Pound with a rolling pin, mallet or heavy skillet until crushed. Pour out onto a small plate. Wet outside rims of martini glass with water. Dip glass in crushed butterscotch candies to lightly coat.
Fill cocktail shaker half full with ice. Add butterscotch schnapps and vanilla vodka; shake until well mixed and chilled. Strain into martini glass.