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Over medium heat, melt the butter in a large saucepan along with the ground nutmeg.With a wooden spoon, stir in the brown sugar and milk, removing any lumps, and bring to a boil for 2-3 Minutes without stirring.
Remove from the heat, and stir in the vanilla, then the peanut butter.
Put the powdered sugar in a large heatproof mixing bowl. Then, pour the hot peanut butter and sugar mixture on top of the powdered sugar, and beat with a wooden spoon until smooth.
Pour into an 8-inch (20 cm) square baking pan, cover the top with parchment, and press down to smooth out the top (I use another 8-inch pan to do this) set aside to cool slightly (10 minutes should do), then place in the fridge to cool completely.
Turn the fudge out of the tin onto the parchment, cut into 36 squares (or smaller, if you prefer).
Melt the chocolate, and add a thin layer to top of each piece of fudge. Allow the chocolate to set, and sprinkle each piece of fudge with a few grains of flaky sea salt.
Store in an airtight container.