Caramel Nut Fudge Squares are a decadent, old-fashioned confection that delivers the rich, buttery flavor of caramel and the satisfying crunch of toasted nuts in every bite. This recipe creates a uniquely soft yet firm fudge with a deep caramel flavor that comes from patiently cooking a mixture of brown and white sugars with cream, butter, and sweetened condensed milk to the precise soft-ball stage. The result is a fudge that’s creamier and more complex than traditional versions, with the sweetened condensed milk providing an extra layer of richness and helping to prevent sugar crystallization. The nuts not only add wonderful texture but also provide a savory contrast that balances the sweetness perfectly. These squares represent the kind of homemade candy that feels both nostalgic and special, the perfect treat for holiday gift-giving or an indulgent dessert.
The success of this fudge hinges on temperature precision and patient stirring. Using a heavy-bottomed saucepan is essential for even heat distribution that prevents scorching, while constant stirring during the initial cooking phase ensures the sugars dissolve completely before boiling. The soft-ball stage (240°F) is crucial—it’s the temperature at which the sugar syrup forms a soft, pliable ball when dropped into cold water, indicating the perfect concentration for fudge that sets firmly yet remains tender to bite. The final stirring after removing from heat is what gives fudge its characteristic smooth, slightly grainy texture, as this is when tiny sugar crystals form throughout the mixture. Allowing the fudge to set slowly at room temperature rather than rushing it in the refrigerator ensures the ideal creamy texture. This is a candy-making project that rewards attention to detail with exceptionally delicious results.
Why You’ll Love This Recipe:
• Rich Caramel Flavor: Deep, buttery taste that’s more complex than traditional fudge
• Perfect Texture: Firm yet creamy with satisfying nutty crunch
• Gift-Worthy: Beautiful homemade candy perfect for sharing
• Make-Ahead Friendly: Stores well and actually improves after a day or two

Ingredients:
• 2 cups granulated sugar
• 1 cup brown sugar, packed
• 1 cup heavy cream
• ½ cup unsalted butter
• 1 cup sweetened condensed milk
• 1 cup chopped nuts (walnuts, pecans, or peanuts)
• 1 teaspoon vanilla extract
• ¼ teaspoon salt
Instructions:
Step 1: Prepare Pan
• Line an 8×8-inch baking dish with parchment paper, allowing some overhang on two sides for easy removal. Lightly grease the parchment with butter.
Step 2: Combine Ingredients
• In a heavy-bottomed saucepan, combine granulated sugar, brown sugar, heavy cream, sweetened condensed milk, butter, and salt.
Step 3: Cook to Dissolve
• Cook over medium heat, stirring constantly with a wooden spoon or heat-resistant spatula until the mixture comes to a boil and the sugars have completely dissolved.
Step 4: Reach Soft-Ball Stage
• Continue cooking, stirring frequently to prevent scorching, until the mixture reaches 240°F (115°C) on a candy thermometer. This is the soft-ball stage and will take approximately 10-15 minutes.
Step 5: Cool and Add Flavor
• Remove from heat and let cool for 5 minutes without stirring. Then add vanilla extract and beat vigorously with a wooden spoon until the mixture thickens slightly and loses its gloss.
Step 6: Add Nuts and Set
• Stir in chopped nuts until evenly distributed. Immediately pour into the prepared pan and spread evenly.
• Let cool at room temperature until completely firm, about 3-4 hours, or refrigerate for 1-2 hours for faster setting.
Step 7: Cut and Serve
• Use the parchment paper to lift the fudge from the pan. Cut into 1-inch squares with a sharp knife.
Tips:
• Candy Thermometer Essential: Don’t attempt this recipe without one for accurate temperature reading
• Heavy Pan Prevents Burning: A thick-bottomed saucepan distributes heat evenly
• Toast Nuts First: Toasting nuts before adding enhances their flavor significantly
• Don’t Rush Beating: Proper beating after cooking creates the perfect fudge texture
Storage Options:
• Room Temperature: Store in an airtight container with wax paper between layers for up to 2 weeks
• Refrigerator: Will keep for 3-4 weeks refrigerated
• Freezing: Freeze in airtight containers for up to 3 months
Caramel Nut Fudge Squares are the ultimate homemade candy—rich, decadent, and perfect for special occasions or as edible gifts. Their perfect balance of sweet caramel and savory nuts makes them irresistible to both make and share.