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Line an eight inch square dish with foil or parchment paper.
Add the butter and peanut butter to a medium pot then place over medium heat and bring to a boil stirring occasionally.
Bring to a steady boil then remove from heat and stir in the powdered sugar and vanilla.
Once the sugar is completely stirred in transfer to your prepared dish and smooth with a spatula. Set aside to cool and set (about an hour).
When the fudge has set you can invert onto a cutting board, remove lining and cut into squares.