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Line a cookie sheet with parchment or waxed paper; set aside. In a medium microwave-safe bowl, combine chocolate pieces, sweetened condensed milk, and water.
Microwave, uncovered, on 100% power (high) for 1 minute; stir. Microwave about 1 minute more, or until chocolate is melted and mixture is smooth, stirring every 30 seconds. Stir in nuts and vanilla. Pour mixture onto prepared cookie sheet and spread it into a 9x6-inch rectangle, or drop mixture by rounded teaspoons onto prepared cookie sheet.
Chill fudge about 30 minutes or until firm. Cut fudge into 1-1/2-inch squares. Makes 24 pieces