COMBINE granulated sugar, butter and water in large bowl. Stir in eggs and vanilla extract. Combine flour, cocoa, baking powder and salt in medium bowl; stir into sugar mixture. Stir in Milk Duds. Spread into prepared baking pan.
Add sugar and water into a saucepan over low heat. Stir until sugar has dissolved. Once sugar has dissolved increase heat to high. Swirl the pan to keep the mixture moving. The mixture will start to bubble after a minute.