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1. Line an 8x8x2-inch baking pan with foil, extending the foil over the edges of the pan. Butter the foil; set pan aside.
2. Butter the sides of a 2-quart heavy saucepan. In saucepan combine sugar, evaporated milk, and butter. Cook and stir over medium-high heat until mixture boils (about 10 minutes). Reduce heat to medium; continue cooking, stirring constantly, for 6 minutes.
3. Remove saucepan from heat. Add marshmallows, chocolate pieces, walnuts, and vanilla; stir until marshmallows and chocolate melt and mixture is combined. Beat by hand for 1 minute.
4. Spread fudge evenly in the prepared pan. Score into squares while warm. Cover and chill for 2 to 3 hours or until firm. When fudge is firm, use foil to lift it out of pan. Cut fudge into squares. Store tightly covered in the refrigerator for up to 1 month. Makes about 2 pounds (64 pieces).
