The Rovers boss has been impressed with the striker's displays in the draw against Brighton and the FA Cup win over Derby County in which Kazim-Richards scored the opening goal at Pride Park.
There had been speculation surrounding the Turkish international as the January transfer deadline drew to a close but Appleton is delighted that Kaz remains on loan with Rovers until the end of the season.
"I have a good conversation with Kaz today as well and he is very very positive," said Appleton on Friday.
"He is enjoying his football, he says he's loving it at the minute so long may that continue because if he puts in the performances that he has over the last couple of games then I'll be delighted.
"When he is like that he is almost unplayable because he is in the right frame of mind.
"When you've got players like Kaz it is important to make sure that he is a good frame of mind and he is certainly in one at the minute, I'm enjoying watching him."
See Colin Kazim-Richards and the rest of the Rovers squad in action against Bristol City on Saturday.
Tickets for the game will be on sale right up until kick-off priced from £15 for Adults, £10 for Seniors and £5 Juniors.
Book online today at www.onerovers.co.uk
and collect your tickets from the Blackburn End collection point on the day of the game.