This Fantasy Fudge has been a celebration staple in my kitchen for as long as I can remember. I first made this version on a blustery December afternoon when I needed a quick, crowd-pleasing gift to bring to a neighbor’s cookie exchange. The glossy, chocolatey surface, the pillowy marshmallow-sweetness woven through the middle, and the satisfying crunch of walnuts made everyone pause mid-conversation and ask for the recipe. It’s not fussy, it does not require tempering chocolate or complicated equipment, and it delivers the kind of nostalgic texture that tastes like a dozen holiday memories at once. I love how reliably this recipe turns out: a simple stovetop process transforms pantry staples into thick, sliceable squares that hold together beautifully. The marshmallow creme keeps the texture smooth and slightly marshmallow-sweet without adding graininess. The evaporated milk contributes creaminess and helps produce a fudge with a firm bite but not chalky dryness. Over the years I’ve experimented with brands and found that using a sturdy margarine such as BlueBonnet and Nestle Toll House semi-sweet chips yields a shine and mouthfeel that my family prefers. When friends come over, a plate of these 1x1-inch squares vanishes within an hour.

Ingredients

• Granulated sugar (3 cups): The backbone for structure and sweetness. Use regular white granulated sugar for predictable results; do not substitute with coarse or raw sugars because they affect dissolution and texture.
• Margarine (3/4 cup): I use BlueBonnet brand because it melts predictably and gives a glossy finish. Margarine contributes fat without the stronger dairy flavors of butter; if you prefer butter, see substitutions below.
• Evaporated milk (2/3 cup): Canned evaporated milk adds concentrated creaminess and helps the mixture set with a firm yet tender bite. Do not replace with regular milk one-for-one.
• Semi-sweet chocolate chips (12 ounces): Nestle Toll House chips melt evenly and provide the chocolate base. You can use chopped chocolate bars for a slightly richer flavor but chips are convenient and consistent.
• Marshmallow creme (7-ounce jar): Jet-Puff brand blends smoothly into the warm chocolate, giving a soft marshmallow lift. The creme is easier to work with than marshmallows and reduces the risk of graininess.
• Vanilla extract (1 teaspoon): Adds depth and rounds the chocolate-sweet edges. Use a good-quality pure vanilla for best flavor.
• Chopped walnuts (1 cup): Toast lightly if you like a toasty note; they provide crunch and a slight bitterness that balances the sweetness. Pecans are an excellent alternative.

Instructions

Prepare the pan: Line a 9x13-inch straight-sided baking pan with parchment paper and leave an overhang on both long sides to lift the cooled fudge out easily. Use a pan with straight sides to ensure even thickness. Lightly spray the parchment with nonstick spray if you prefer easier release. Combine sugar, margarine and evaporated milk: In a 3- to 4-quart heavy-bottomed saucepan over medium heat, combine 3 cups granulated sugar, 3/4 cup margarine, and 2/3 cup evaporated milk. Stir constantly with a wooden spoon or heatproof spatula to dissolve sugar and prevent hot spots. A heavy pan distributes heat more evenly and reduces scorching. Bring to a rolling boil and cook: Once the mixture reaches a hard rolling boil, maintain that boil and continue stirring constantly for exactly 5 minutes. You should see large bubbles breaking the surface across the entire pan, not just around the edges. This stage is crucial to develop the proper set and texture; remove from heat immediately after 5 minutes to avoid graininess or overcooking. Incorporate chocolate chips: Remove the pan from the heat and immediately add 12 ounces of semi-sweet chocolate chips. Stir until the chips melt and the mixture becomes glossy and uniform. The residual heat will melt the chocolate without overheating it; work quickly to achieve a smooth base. Stir in marshmallow creme, vanilla and nuts: Add the 7-ounce jar of marshmallow creme and 1 teaspoon vanilla extract, stirring until no marshmallow streaks remain and the texture is smooth. Fold in 1 cup chopped walnuts until evenly distributed. The marshmallow creme lightens the texture and helps keep the fudge spreadable for pouring. Pour and set: Pour the mixture into the prepared 9x13-inch pan and use a small offset spatula to smooth the surface into an even layer. Allow to cool at room temperature until fully firm, about 2 to 4 hours depending on ambient temperature. Once set, lift the parchment overhang to remove the slab and slice into 1x1-inch squares with a sharp knife.

Storage Tips

Wrap cooled squares individually in wax or parchment paper for gifting, then place them in an airtight container. At room temperature in a cool pantry, they keep for up to 1 week; refrigeration extends freshness to about 2 weeks and helps maintain a firm bite. For longer storage, freeze in single layers separated by parchment in a freezer-safe container for up to 3 months. Thaw in the refrigerator or at room temperature; avoid microwaving frozen pieces as it can change texture. Use a sharp knife dipped in hot water and wiped dry to make clean cuts.

Ingredient Substitutions

If you prefer butter, substitute an equal volume of unsalted butter for the margarine; expect a slightly richer, creamier flavor and a softer set. To make this dairy-free, use a dairy-free chocolate that replaces milk solids and a nondairy evaporated milk alternative designed for cooking, though results will vary. Swap walnuts for pecans or chopped almonds for different textures. For a nut-free version, omit nuts entirely and add 1/2 cup toasted coconut or crushed pretzels for crunch.

Serving Suggestions

Serve these squares on a decorative platter sprinkled lightly with flaky sea salt or a dusting of cocoa powder for contrast. They pair wonderfully with coffee or a nutty dessert wine. For holiday gatherings, nestle pieces in mini paper cups and present them in tiers. These are ideal as small after-dinner treats, part of a dessert board with cookies and candies, or tucked into gift boxes for neighbors and teachers.

Cultural Background

Sweet, chocolate-based confections like this one have deep roots in American holiday baking traditions where small, rich bites are exchanged and shared. The use of marshmallow creme is a distinctly mid-20th-century American convenience twist that replaced older methods using hand-toasted marshmallows or sugar syrups. Adding nuts like walnuts or pecans echoes regional preferences across the U.S. South and Midwest, creating variations that reflect local harvests and family customs. This recipe lives at the intersection of nostalgia and convenience.

Seasonal Adaptations

In winter, fold in 1/2 cup crushed peppermint candies for a festive touch and top with a sprinkle of crushed candy cane. For spring, stir in 1/2 cup dried cherries or cranberries and garnish with chopped pistachios for color. During summer cookouts, omit the nuts and ripple in a swirl of peanut butter for a more summery, picnic-friendly treat. Adjust cooling time if your kitchen is warm; refrigerate briefly to speed setting when necessary.

Meal Prep Tips

Make a double batch and freeze half for later; divide into single layers on parchment and freeze flat before stacking in airtight containers. Label with date and contents. When preparing for events, slice the chilled slab the day before and keep pieces chilled in an airtight container to minimize sweating and preserve crisp edges. If transporting, pack between layers of parchment in a shallow box to prevent sticking and crushing.

Ultimately, this Fantasy Fudge is about the little rituals of sharing: the careful stirring, the aroma that fills the kitchen, and the way a simple square can prompt conversation. Make it your own with nuts or no nuts, add a sprinkle of sea salt, and watch how quickly it disappears.