This Fantasy Fudge has been a holiday staple in my kitchen for as long as I can remember. I first tasted it at a neighbor's cookie swap one December and immediately asked for the recipe. The texture is glossy and dense, with a soft snap when you bite into a 1x1 square, and the flavor balances deep semi-sweet chocolate with the bright, pillowy sweetness of marshmallow creme. It melts slowly on the tongue, with a pleasant walnut crunch that keeps every bite interesting. I discovered a trick early on: using a straight-sided 9x13 pan lined with parchment makes slicing tidy squares effortless, and the fudge releases cleanly when fully cooled.

Over the years I've made small adjustments—choosing BlueBonnet margarine when I want a slightly lighter, familiar buttery flavor and Nestle Toll House chocolate chips for their dependable melting profile. I love how the evaporated milk adds body and a subtle caramelized note when the sugar reaches a rolling boil. This is the kind of confection that fills the house with aroma, attracts friends to the kitchen, and disappears quickly at gatherings. It’s approachable for a busy home cook yet delivers that classic, nostalgic treat everyone expects at holiday time.

Ingredients

• Granulated sugar (3 cups): The backbone of the confection—use good-quality white sugar for clean sweetness. Measured level in a dry measuring cup to keep the sugar-to-liquid ratio exact; uneven sugar can affect set.
• Margarine, BlueBonnet (¾ cup): I use BlueBonnet for its reliable buttery flavor and consistent melting behavior. Margarine helps the fudge set with a softer bite than butter; if you prefer butter, see substitutions below.
• Evaporated milk (⅔ cup): Adds body and a slight caramelized note when boiled with sugar. Use canned evaporated milk, not sweetened condensed milk; it keeps the texture balanced and prevents over-sweetness.
• Semi-sweet chocolate chips, Nestle Toll House (12 ounces): These chips melt evenly and contribute a deep chocolate backbone. If you prefer a sweeter end result, choose milk chocolate; dark chocolate will intensify cocoa notes.
• Marshmallow creme, Jet-Puff (7 ounces): Gives the fudge a glossy sheen and soft, marshmallow-y chew. The jarred version distributes smoothly and prevents graininess that can occur with mini marshmallows.
• Vanilla extract (1 teaspoon): Rounds out flavors—use pure vanilla extract for the best aroma.
• Chopped walnuts (1 cup): Adds crunch and a slightly bitter counterpoint to the sweet base. Toast lightly for more depth, or swap for pecans or toasted almonds.

Instructions

Prepare the pan: Line a 9x13-inch, straight-sided baking pan with parchment paper, leaving an overhang on two sides for easy removal. Grease the parchment lightly with a thin smear of margarine to help the fudge adhere slightly and release cleanly when cooled. Combine sugar, margarine, and evaporated milk: In a 3-4 quart saucepan over medium heat, add 3 cups granulated sugar, ¾ cup margarine, and ⅔ cup evaporated milk. Stir until the margarine melts and the mixture is combined. Use a heavy-bottomed pan to prevent hot spots and burning; an even heat helps avoid caramelization spots that can alter the taste. Bring to a rolling boil: Increase heat and bring to a hard or rolling boil while stirring constantly. A rolling boil is one that does not stop bubbling when stirred. Once it reaches that stage, begin timing and continue stirring constantly for exactly 5 minutes. Keeping the mixture moving prevents sugar from crystallizing on the sides and provides a smooth finish. Remove from heat and add chocolate: After exactly 5 minutes at a hard boil, remove the pan from the heat immediately. Add 12 ounces semi-sweet chocolate chips and stir until fully melted and the mixture is glossy and uniform. Do not return to heat; residual heat is enough to melt the chips without overcooking the fudge. Finish with marshmallow, vanilla, and nuts: Stir in the 7-ounce jar of marshmallow creme and 1 teaspoon vanilla extract until no marshmallow streaks remain. Fold in 1 cup chopped walnuts evenly. The marshmallow creme lifts the texture, creating a softer, almost creamy chew. Set and slice: Pour the mixture into the prepared pan and smooth into an even layer with a small offset spatula. Allow to cool completely at room temperature—this may take several hours. Once set, lift the fudge using the parchment overhang and slice into 1x1-inch squares with a sharp knife, wiping the blade between cuts for clean edges.

Storage Tips

Store cooled squares in an airtight container layered between sheets of parchment or wax paper to prevent sticking. At room temperature they will keep well for up to 5 days in a cool, dry place—avoid warm kitchens where margarine might soften too much. For longer storage, freeze wrapped squares in a single layer on a tray until firm, then transfer to a freezer-safe container for up to 3 months. Thaw at room temperature for 30–60 minutes before serving; avoid microwaving, which can change texture and cause grease separation.

Ingredient Substitutions

If you prefer butter instead of margarine, substitute equal parts but expect a slightly firmer set and a more pronounced buttery flavor. For a nut-free version, omit walnuts and add 1 cup crisped rice cereal for crunch. Swap semi-sweet chocolate chips for milk chocolate for a sweeter result or dark chocolate for an intense cocoa bite—adjust marshmallow creme quantity up or down if you change the sweetness level. Use dairy-free chocolate and a nondairy evaporated milk alternative for a dairy-free attempt, though texture and setting may differ.

Serving Suggestions

Serve these squares on a festive platter dusted with a light sift of cocoa or powdered sugar, or top individual pieces with a toasted walnut half for presentation. They pair wonderfully with a sharp espresso or a cup of strong black tea to cut the sweetness. Package them in small cellophane bags tied with ribbon for gifts, or arrange them in a decorative tin layered with parchment for potlucks. For an elegant dessert board, combine with shortbread cookies and dried fruit.

Cultural Background

This style of fudge is rooted in American home candy-making traditions, where simple pantry ingredients transform into celebratory confections. Using marshmallow creme as a stabilizer and sweetener became popular in mid-20th century North America when jarred marshmallow spreads became widely available. Many families developed signature versions—some with nuts, some with coconut—and it became a common holiday tradition to pass down one-pan candy recipes at neighborhood gatherings and church bazaars.

Seasonal Adaptations

In winter, fold in ½ cup crushed peppermint candies or top with crushed candy cane for a festive mint-chocolate version. For autumn, stir in 1 teaspoon ground cinnamon and replace walnuts with toasted pecans for a warming spice note. During spring or summer, omit nuts and swirl in a tablespoon of almond or orange extract for a bright twist. Small seasonal toppings—sea salt flakes in winter or toasted coconut in summer—make it easy to adapt the same method year-round.

Meal Prep Tips

Make a double batch and freeze half for later to save time during busy holiday weeks. Portion squares into single-serve containers or wrap individually before freezing for grab-and-go treats. If you plan to gift, slice before freezing and store in parchment-lined tins; thaw completely before presenting to avoid condensation on the pieces. Label containers with the date—properly wrapped fudge will stay fresh for months in the freezer without losing texture.

Making Fantasy Fudge always feels a little like stepping back into family kitchens—simple ingredients, clear technique, and the joy of sharing something homemade. Whether you’re gifting, entertaining, or just craving a rich chocolate bite, this is a reliable, beloved confection that warms both kitchen and heart. I encourage you to make it your own with small swaps and to enjoy the memories that come with every pan.