This Fantasy Fudge is the kind of confection that immediately transports me back to holiday kitchens: warm, fragrant, sticky-sweet, and impossible to resist. I first made this version during a December when I was determined to simplify holiday cookie trays by including one melt-in-your-mouth candy that even my picky relatives would accept. The combination of a firm, glossy sugar base with melted semi-sweet chocolate and marshmallow creme creates a silky texture that holds together well when sliced, while the toasted walnuts add a satisfying crunch. Every year since, this batch has been requested for parties, charitable bake sales, and as a small homemade gift tucked into a festive tin.

What makes this particular variation special is the marshmallow creme folded in at the end. It lightens the texture, keeps the fudge from becoming grainy, and gives the surface the faint sheen that people assume comes from professional chocolatiers. I use BlueBonnet margarine for its consistent melting behavior, Nestle Toll House semi-sweet chips because they melt smoothly without seizing, and Jet-Puff marshmallow creme for that classic fluffiness. The result is reliably luscious: chocolatey, slightly chewy, and nutty with every bite.

Ingredients

• Granulated sugar: 3 cups. Use regular granulated sugar for predictable crystallization and sweetness; avoid using caster sugar because its finer grain changes the boiling behavior.
• Margarine: 3/4 cup. I use BlueBonnet because it melts evenly and helps the mixture reach the proper boil point without sputtering; stick margarine works here but avoid spreads with high water content.
• Evaporated milk: 2/3 cup. The slightly concentrated dairy solids help create a creamy mouthfeel and prevent the sugar from seizing as it cooks.
• Semi-sweet chocolate chips: 12 ounces. Nestle Toll House chips melt smoothly and contribute a balanced chocolate flavor; you can swap dark chips for a deeper taste.
• Marshmallow creme: 7-ounce jar. Jet-Puff brand adds lightness and stabilizes the candy, keeping it from becoming grainy as it cools.
• Vanilla extract: 1 teaspoon. Adds warmth and depth to the chocolate base; use pure vanilla for best flavor.
• Chopped walnuts: 1 cup. Toast them briefly in a dry skillet for 3–4 minutes to intensify the flavor, then cool before folding into the finished mixture.

Instructions

Prepare the pan: Line a 9x13-inch straight-sided pan with a length of parchment paper so that it overhangs on two sides. This overhang creates handles that make lifting the set fudge out of the pan easy and prevents the candy from sticking to the sides when slicing. Combine sugar, margarine, and evaporated milk: In a 3- to 4-quart saucepan set over medium heat, add 3 cups granulated sugar, 3/4 cup margarine, and 2/3 cup evaporated milk. Stir constantly until the margarine melts and the mixture comes to a rolling, hard boil. A heavy-bottomed saucepan distributes heat evenly and reduces the risk of scorching. Boil to the right stage: Once the mixture reaches a hard boil, start timing and continue stirring constantly for exactly 5 minutes. The constant stirring prevents hot spots and graininess. If you have a candy thermometer, the mixture should reach about 242–250°F (118–121°C) during this stage; however, the specified five-minute boil is the traditional method used with evaporated milk and margarine. Remove from heat and add chocolate: After the five-minute hard boil, remove the saucepan from the heat immediately and add 12 ounces semi-sweet chocolate chips. Stir steadily until the chips melt completely and the mixture becomes glossy and uniform. Fold in marshmallow creme, vanilla, and nuts: Add the entire 7-ounce jar of marshmallow creme and 1 teaspoon vanilla extract. Stir until the marshmallow is fully incorporated and no streaks remain. Fold in 1 cup chopped walnuts, distributing them evenly through the fudge. Set and cool: Pour the mixture into the prepared 9x13 pan and smooth the top with a small offset spatula. Allow the confection to cool completely at room temperature until firm, about 2–4 hours depending on ambient temperature. For quicker setting, refrigerate until firm but bring to room temperature before serving for best texture. Slicing and serving: Lift the set candy from the pan using the parchment overhang and place on a cutting board. Trim the edges if desired, then slice into 1x1-inch squares using a sharp knife warmed under hot water and wiped dry between cuts for clean edges.

Storage Tips

To maintain texture and flavor, store the confection in a single layer or with parchment between layers in an airtight container at room temperature for up to two weeks. If your kitchen is humid or warm, refrigerate in an airtight container to prevent stickiness; bring pieces to room temperature for 20–30 minutes before serving for the best chew. For long-term storage, freeze individual pieces on a baking sheet until solid, then transfer to a freezer-safe container with parchment between layers. Thaw overnight in the refrigerator and then sit at room temperature before presenting to restore the creamy mouthfeel.

Ingredient Substitutions

If you prefer a different fat, you can substitute unsalted butter for margarine at a 1:1 ratio; note that butter will impart a richer dairy note and may slightly darken the color. For a darker, less sweet finish, replace semi-sweet chips with bittersweet or dark chocolate chips. If you need a nut-free version, omit the walnuts and add 1 cup of toasted sunflower seeds or crisped rice for texture. To make this with milk alternatives is challenging because evaporated milk contributes to structure; you can experiment with a concentrated canned coconut milk, but expect a coconut flavor and slightly different texture.

Serving Suggestions

Serve chilled or at room temperature on a decorative tray lined with doilies for holidays. These small squares pair wonderfully with strong coffee or a robust black tea to cut the sweetness. For a festive presentation, drizzle a little melted white chocolate over the top before it sets, or press a few extra walnut pieces into the top for a rustic finish. Pack into small cellophane bags for gifts, tied with a ribbon and a homemade label detailing ingredients and date made.

Cultural Background

This style of confection hails from mid-20th-century American home baking, when home cooks relied on pantry staples and canned goods to create indulgent sweets. Marshmallow creme became popular in the United States in the early 1900s and was adapted into many candy and frosting applications. Combining chocolate and marshmallow in a boiled sugar base reflects a blending of candy-making techniques with home dessert sensibilities that made such treats a holiday staple across many households.

Seasonal Adaptations

Adapt this sweet for different seasons by changing nuts and flavorings: swap walnuts for pecans and add a pinch of cinnamon for autumn, or fold in dried cranberries and a little orange zest for a winter holiday twist. For spring and summer, omit nuts entirely and stir in 1 cup of toasted coconut flakes for a lighter, tropical profile. You can also dye a portion of the top layer with gel food coloring and marbelize for themed occasions.

Meal Prep Tips

Make a double batch and freeze in portioned boxes for up to three months so you always have a homemade treat ready. When prepping for events, do the candy stage the day before and allow it to set fully overnight; slice the following morning for cleaner cuts. Use a warmed, sharp knife and wipe between cuts to preserve neat edges. Label containers with the date and any allergen notes if you plan to give them away.

There is comfort in making something by hand that brings people together. This Fantasy Fudge is straightforward, dependable, and has become a small tradition in my household. I hope you find it as joyful to make as I do and that it earns a spot on your holiday tray or in your tin of homemade gifts.