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Step 1
Line a deep 19cm (8-inch) square cake pan with aluminium foil; grease top of foil.
Step 2
Combine marshmallows, butter and the water in a medium saucepan over medium heat; cook, stirring, until marshmallows are melted. (Mixture will be bubbling gently while the marshmallows are dissolving).
Step 3
Remove from heat, stir in chocolate and extract. Stir with a wooden spoon until chocolate is melted.
Step 4
Stir in nuts; beat with a wooden spoon until mixture becomes sticky. Pour mixture into pan. Refrigerate for 4 hours or overnight before cutting into bars.