Make dreamy fantasy fudge that tastes just like the original with marshmallow creme and chocolate chips. Make it on the stovetop or in the microwave for the smoothest, richest, and creamiest no bake fudge every single time. This foolproof recipe is a classic Christmas treat, and it also makes a perfect edible gift for your significant other on Valentine’s Day!
It’s that time of the year when I’m singing Christmas songs just about every day from the moment I wake up. It’s cold outside, snow is on the ground (in the movies), and I’m busy making all of the festive holiday treats, like hot cocoa cookies, Italian sugar cookies, white chocolate cranberry pistachio cookies, and fantasy fudge. It may just be my favorite time of the year.

You can serve your homemade fudge at a New Year’s Eve party, or wrap it up and give it away for your family’s Christmas gift exchange. It also makes a great Valentine’s Day gift alongside chocolate covered strawberries for all you chocolate lovers, or just make it for fun! It’s so easy to make, and it doesn’t require any bake time, so it makes the perfect sweet treat to cure those sweet tooth cravings no matter the time of the year.
What is Fantasy Fudge?
In case you’re wondering what fantasy fudge actually is, it’s an old recipe for homemade fudge that used to be on the back of every Kraft marshmallow creme jar. It’s just that that sets fantasy fudge apart from other homemade fudge; the marshmallow creme in this recipe gives this fudge its characteristic smooth and creamy texture that made it so famous in the first place.
Something else that set the original recipe apart is that it calls for chocolate chips. Kraft has since changed the recipe to use Baker’s chocolate, but the original fantasy fudge with chocolate chips is still considered to be a classic Christmas fudge in many households to this day.

Ingredients & Substitutions Notes
- Salted Butter – You can use either salted butter or margarine. I don’t really like margarine, so I always use butter instead. It tastes better too.
- Evaporated Milk – You’ll need a little bit of evaporated milk for this recipe.
- Semi-Sweet Chocolate Chips – The original fantasy fudge recipe on the back of the marshmallow creme jars called for semi-sweet chocolate chips. Most fudge connoisseurs agree that chocolate chips make the best homemade fudge, and I agree.
- Marshmallow Creme – Marshmallow creme is the secret ingredient to rich and creamy fantasy fudge. It’s so yummy!
- Chopped Walnuts – I like to sprinkle in some chopped walnuts, but you can leave them out altogether if you have any nut allergies, or maybe you don’t like nuts in your fudge! Alternatively, you can also use chopped pecans.
How to Make Fantasy Fudge
Whether you make it on the stovetop or in the microwave, you’ll want to start by greasing up a 9×13 baking dish with nonstick cooking spray. Before getting started, I recommend keeping a timer handy so that you can follow the times given in this recipe to a tee. It’s extremely important that you don’t overcook your fudge, or else it can become very dry and crumbly after it sets.
How to Make Stovetop Fantasy Fudge
First I’ll show you how to make fantasy fudge on the stovetop…
- In a 2 1/2 quart saucepan, combine the sugar, butter, and evaporated milk. Bring the mixture to a full rolling boil over low to medium heat, stirring constantly.
- Continue boiling for 5 minutes over low to medium heat, stirring constantly with a whisk to prevent scorching.
- Remove the pan from the heat; stir in the chocolate chips ’til melted.
- Add the marshmallow cream, vanilla extract, and walnuts; stir or beat until well blended.
- Pour the mixture into a greased 9×13 pan, and cool at room temperature.
- Cut into squares and serve. Store in an airtight container in the fridge.

How to Make Microwave Fantasy Fudge
If you don’t feel like dragging out the sauce pot to make stovetop fudge, you can alternatively make great fantasy fudge in the microwave. I’ve made it this way, and it turned out great!
- Start by heating the butter in a 4 quart microwaveable bowl in the microwave on high for about 1 minute, or ’til melted.
- Then add the sugar, salt and evaporated milk, mixing well. Heat on high for another 3 minutes, stir it up, and heat on high again for another 2 minutes, or ’til the mixture just starts to boil.
- Mix it up again with a rubber spatula, making sure to scrape the bottom of the bowl. Microwave again for 3 more minutes, then stir and microwave for another 2 1/2 minutes. Let set for 2 more minutes, and then stir in the chocolate chips ’til melted.
- Add the marshmallow creme, vanilla and chopped walnuts, mixing ’til well combined.
- Pour the mixture into a greased 9×13 pan, and let cool at room temperature.
- That’s it! Just like with stovetop fudge, cut into squares and serve.

Flavor Variations & Other Optional Add-Ins
If you’re looking for a few ways to switch things up, here are a few ideas…
- Add a few drops of peppermint extract into the fudge batter for an extra minty flavor. Throw in some crushed up candy canes for a peppermint-bark like flavor!
- Instead of semi-sweet chocolate chips, make it with white chocolate chips to make white chocolate fudge instead.
- Swirl in some peanut butter sauce, or melted peanut butter chips, to make chocolate peanut butter swirl fudge.
- Mix in some mini marshmallows at the very end for bonus gooey marshmallow pockets in every bite!
- Last but not least, mix in instant coffee or espresso powder to make a simple mocha fudge…

Expert Tips and Recipe FAQ’s
This is because the sugar crystallized and didn’t fully dissolve. This is why I recommend mixing the sugar into the milk in the first step, and then letting that mixture come to a full, rolling boil for at least 5 minutes. You’ll want to whisk it constantly as it boils, so that the sugar fully dissolves. If all that sugar tries to settle to bottom, you can scrape it up with a rubber spatula, and then whisk some more, ’til dissolved. Don’t rush it!
Stored in an airtight container, fantasy fudge will last up to 2 weeks on the counter at room temperature. You can also store it in the fridge for an extended shelf life of about 4 weeks.
Yes, you can freeze fantasy fudge. Once cooled, wrap your homemade fudge with a layer of plastic wrap and another layer of aluminum foil. Transfer to the deep freeze for up to 3 months.

More of My Family’s Favorite Holiday Treats
- Brownie Trifle
- Hot Chocolate with Chocolate Chips
- Homemade Hot Chocolate Mix
- Chocolate Peanut Butter Ritz Cracker Cookies
- Buckeye Balls
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Fantasy Fudge
Equipment
Ingredients
- 3 cups cane sugar
- 1/2 teaspoon sea salt
- 3/4 cup salted butter
- 2/3 cup evaporated milk
- 12 ounces semi-sweet chocolate chips
- 7 ounces marshmallow cream
- 1 teaspoon vanilla extract
- 1 cup chopped walnuts optional
Instructions
Stovetop Fantasy Fudge
- In a 2 1/2 quart saucepan, combine the sugar, butter, and evaporated milk. Bring the mixture to a full rolling boil over low to medium heat, stirring constantly.
- Continue boiling for 5 minutes over low to medium heat, stirring constantly to prevent scorching.
- Remove the pan from the heat; stir in the chocolate chips 'til melted.
- Add the marshmallow cream, vanilla extract, and walnuts; stir or beat until well blended.
- Pour the mixture into a greased 9×13 pan, and cool at room temperature.
- Cut into squares and serve. Store in an airtight container in the fridge.
Microwave Fantasy Fudge
- Start by heating the butter in a 4 quart microwaveable bowl in the microwave on high for about 1 minute, or ’til melted.
- Then add the sugar, salt and evaporated milk, mixing well. Heat on high for another 3 minutes, stir it up, and heat on high again for another 2 minutes, or ’til the mixture just starts to boil.
- Mix it up again with a rubber spatula, making sure to scrape the bottom of the bowl. Microwave again for 3 more minutes, then stir and microwave for another 2 1/2 minutes. Let set for 2 more minutes, and then stir in the chocolate chips ’til melted.
- Add the marshmallow creme, vanilla and chopped walnuts, mixing ’til well combined.
- Pour the mixture into a greased 9×13 pan, and let cool at room temperature.
- That’s it! Just like with stovetop fudge, cut into squares and serve.


Another winner and great for gift giving!!! We loved it