This Fantasy Fudge is the one my grandma called her special marshmallow fudge, and it’s still a Christmas season favorite at our house. It’s an old recipe from the back of the marshmallow creme jar (Kraft’s Jet-Puffed), and this classic recipe has truly stood the test of time.

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With just a few simple ingredients, you boil sugar, butter and evaporated milk for exactly five minutes, then stir in chocolate chips, a jar of marshmallow creme and vanilla. The marshmallow creme keeps it smooth and creamy, so you don’t need a candy thermometer. Pour it into a lined pan, let it set and cut it into squares.
Christmas time is my favorite time of the year to make it. I love to bring a big plate to holiday parties, and I also pack it into vintage Christmas tins and give it away to friends and family as holiday gifts, which makes it one of my favorite Christmas candy recipes.
What You’ll Learn
- How to make the original Fantasy Fudge recipe from the marshmallow creme jar.
- Why the exact 5-minute boil matters, and why you don’t need a candy thermometer.
- How to avoid grainy fudge or fudge that won’t set.
- How to store, freeze and gift it.
Why Marshmallow Creme Fudge Works
The marshmallow creme is what makes this recipe so reliable. It helps keep the fudge smooth instead of grainy, so you get creamy chocolate marshmallow fudge every time you follow the steps. That’s why so many families have made this old fashioned fudge for generations, and why I still make it the same way my grandma did.
Fantasy Fudge Ingredients

You’ll find the exact amounts in the recipe card below.
- Sugar: Granulated sugar gives the fudge its sweetness and structure as it cooks.
- Butter: It adds richness and a smooth, creamy texture.
- Evaporated milk: It helps dissolve the sugar and gives the fudge a silky texture. Be sure to grab evaporated milk, not sweetened condensed milk.
- Semi-sweet chocolate chips: One 12-ounce bag brings rich chocolate flavor and helps the fudge set up firm.
- Marshmallow creme: Sometimes called marshmallow cream. One 7-ounce jar of Jet-Puffed marshmallow creme keeps the fudge soft and smooth.
- Vanilla extract: It rounds out the flavor and makes the chocolate taste even richer.
- Chopped nuts: Totally optional, but walnuts or pecans add a nice crunch.
How to Make Fantasy Fudge
Here are my step-by-step instructions.
Step one: Spray a 9-inch square pan (a 9×13 works too) with cooking spray, then line it with parchment paper, leaving overhang on both sides so you can lift the fudge out later.


Step two: In a medium pot, stir together the sugar, butter and evaporated milk.
Step three: Bring the mixture to a full rolling boil over medium-high heat, stirring constantly so it doesn’t scorch. I use a wooden spoon.
Step four: Boil for EXACTLY five minutes, stirring the whole time. Set a timer! This is the step that makes perfect, creamy Fantasy Fudge.
Step five: Remove the pot from the heat. Working quickly, stir in the chocolate chips until they’re completely melted.



Step six: Stir in the marshmallow creme and vanilla. Some people use regular marshmallows in a similar recipe, but I stick with the jar, just like the original.
Step seven: Stir in the chopped nuts if you’re using them. During the holiday season, I usually make one batch with nuts and one without.
Step eight: Quickly pour the fudge into the prepared pan, scraping the sides of the pot. Let it cool completely before cutting it into small squares.

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My Best Tips
- Skip the candy thermometer: You don’t need one, as long as you follow the steps exactly.
- Wait for a full rolling boil: That’s a full boil that keeps bubbling even while you stir. Start your timer then.
- Stir constantly: Steady stirring keeps the bottom from scorching and helps prevent grainy fudge.
- Work fast at the end: Once the chocolate goes in, the fudge starts to set, so have everything measured and ready.
- Use room temperature ingredients: They blend together more smoothly. Just say no to grainy fudge!
- Cut clean squares: Lift the fudge out by the parchment and cut it with a large, sharp knife.
Variations
- Nuts: Crunchy walnuts are classic for chocolate walnut fudge, but pecans, almonds or hazelnuts are good too.
- Flavored extracts: Swap the vanilla for almond, peppermint or orange extract.
- Milk chocolate: Use milk chocolate chips instead of semi-sweet for a sweeter take on chocolate fantasy fudge.
- Thicker fudge: Use the 9-inch pan. The 9×13 makes thinner squares.
- Peanut butter chips: Swap in peanut butter chips for peanut butter fantasy fudge. I haven’t tried this one myself yet, but it’s a popular twist.
Love easy fudge recipes? Try my Easy 3 Ingredient Fudge. And if you’d like another old fashioned fudge, my Evaporated Milk Fudge uses mini marshmallows instead of marshmallow creme.

How to Store Fantasy Fudge
Wondering how long fudge lasts? Here’s how I store mine.
Room temperature: Keep the fudge in an airtight container at room temperature for up to one week. Place parchment or wax paper between layers so the pieces don’t stick together.
Refrigerator: For firmer fudge, store it in an airtight container in the fridge for up to two weeks. Let it sit out for about 15 minutes before serving so it softens a little.
Freezer: Yes, you can freeze Fantasy Fudge. Wrap it tightly in plastic wrap, then put it in a freezer-safe container for up to three months. Thaw it overnight in the fridge or on the counter.
Gifting: When I fill my vintage Christmas tins, I stack the squares in layers with parchment between them so they look pretty when the lid comes off.

Fantasy Fudge FAQs
Do I need a candy thermometer?
No. As long as you bring the mixture to a full rolling boil and boil it for exactly five minutes, you don’t need one.
Why is my fudge grainy?
Grainy fudge usually comes from sugar crystals that didn’t dissolve. Stir constantly while it boils, make sure it reaches a full rolling boil, and use room temperature ingredients.
What if my Fantasy Fudge turns out too soft?
If your fudge doesn’t set, the sugar mixture probably didn’t boil long enough. Next time, wait for a full rolling boil over medium-high heat and boil it for the full five minutes, stirring the whole time.
Can I use Marshmallow Fluff instead of marshmallow creme?
Yes. Marshmallow Fluff is a marshmallow creme too, so it works the same way. Use about 7 ounces, or 1½ cups.
Should you use parchment paper when making fudge?
Yes. Lining the pan with parchment makes it easy to lift the whole block out and cut neat squares.
Fantasy Fudge is such a sweet treat, and this easy fudge recipe is about as close to no-fail fudge as it gets. Make a batch of this Christmas fudge for your next holiday party, or tuck it into a Christmas tin for someone you love. Hey, it might even start a new family tradition.
More Homemade Candy
- Old-Fashioned Pecan Pralines
- Evaporated Milk Fudge
- Maple Walnut Fudge
- Velveeta Fudge
- Sugar Cookie Fudge
- Easy Peanut Butter Fudge
- Buckeye Balls
Original Fantasy Fudge

Video
Ingredients
- 3 cups sugar
- ¾ cup butter
- ⅔ cup evaporated milk
- 2 cups semi-sweet chocolate chips
- 1 (7-ounce) jar marshmallow creme 1½ cups
- 1 teaspoon vanilla
- 1 cup chopped nuts optional
Instructions
- Spray a 9×9 (or 9×13) pan with cooking spray. Next, line with parchment paper, leaving overhang on both sides so you can easily lift the fudge out when it’s done.
- In a medium pot, mix sugar, butter and milk.
- Bring the mixture to a full rolling boil using medium-high heat, stirring continuously to prevent scorching.
- Boil for exactly five minutes. This is important! Set a timer!
- Remove the mixture from the heat. Working quickly, stir in chocolate chips until smooth.
- Add the marshmallow creme and vanilla.
- Optionally, add nuts.
- Pour into the prepared pan; allow to cool completely before cutting into squares.
Notes
Nutrition
Nutrition is an estimate from an online calculator, not medical advice, and depends on your portion size.

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Great
I have made this before and really made a hit. It is a recipe and never fails me.
Only thing is I can’t keep my husband away from it!!
Thanks and a Merry Christmas. Judy
Such an easy recipe to follow, I would suggest making sure that you have all ingredients measured out and on the counter before starting to cook the butter, milk & sugar, it eliminates a sense of hurry as you are putting together. The only deviation that I use is to grad another tablespoon or so of butter to grease my dish with, keeps it a bit creamier.
Such a good tip, Jack! Having everything measured and ready makes the last step so much less stressful.
Hi. I have been making this fudge for over 40 years and my mom was making it right after the marshmallow cream came out in 1960/61. At that time it called for kraft parkay margarine. The blocks. And always carnation evaporated milk. The chocolate chips in your recipe is also more than the original one. I only use just over a cup of chips. I’m also had the variation of making peanut butter fudge. You just substitute 1 cup of peanut butter for the chips and no vanilla. You can use creamy peanut butter or crunchy.
The best melt in your mouth fudge recipe EVER! My mom makes it every year…one batch for everyone and one for me. LOL! :)
This is the best fudge recipe! But, I made this with white chocolate chips, and it came out dry and crumbly. It was still melt in your mouth delicious, but I wonder what I did wrong for it to be so crumbly?
Hi Debbie! I’ve only made this one with semi-sweet chips. White chocolate melts and sets differently, so it can turn out drier. Suzanne had the same thing happen with dark chocolate, so semi-sweet is the safest bet.
I always thought it was hard to make good fudge. This recipe was easy and delicious!
Ok see the picture of cutting the fudge. I cut first around the edge so my sheet of fudge is flat and even. Then cut into nice small squares so they are all perfect. The crumbs and edge pieces are ALL mine!!!!!
Love this tip! And I agree, the edge pieces are the cook’s reward.
Been making this for years ! I also use peanut butter chips and it is one of the fave’s amongst my friends!
This recipe was a hit with my family