You just melt the candy wafers in the microwave, dip the pretzels in the candy and then dip again in a bowl of sprinkles. (I added a teaspoon or so of vegetable oil to the candy wafers after melting to get the consistency I was looking for, and I think it helps them not harden so quickly.)
Set them on some waxed paper for about a half hour for the candy coating to harden. Yum, yum! Super easy and a fun project even the 2-year-old can help with.