Step 1

Line an 8 by 8 inch baking dish with parchment paper or aluminum foil. (I do find that parchment paper works a little better - see notes in the pos for more details.) Set aside.

Step 2

In a medium saucepan over medium low heat, melt the peanut butter chips with the sweetened condensed milk, stirring consistenly. Make sure the heat is not too high and you continue to scrape the bottom of the pan to prevent burning.

Step 3

Remove the pan from the heat and stir in the peanut butter and the vanilla extract.

Step 4

Pour into the prepared baking dish. Cover with aluminum foil and let set for four hours. This can be done in the refrigerator for easy cutting later or on the coutnertop.

Step 5

When ready to cut, remove the fudge from the parchment paper. Trim off just enough of the edges to make straight smooth edges. (Or don't! This is only for looks.) Cut the remaining block in half one way and then the other way so you have four large squares. Each square can be cut in thirds one way and then thirds the other way so that each of the squares yields 9 pieces.

Step 6

Store the fudge in an airtight container for up to two weeks. Or eat immediately.