Creamy Caramel Fudge Squares — A Melt-in-Your-Mouth Treat You’ll Want to Share
There’s something wonderfully nostalgic about a piece of fudge. Maybe it’s the velvety melt, the rich sweetness, or the way it turns even the smallest moment into something a bit more special. These Creamy Caramel Fudge Squares bring that feeling front and center. They’re smooth, buttery, deeply comforting, and layered with a caramel center that feels like pure indulgence in every bite.
Whether you’re gifting them during the holidays, packing them into treat boxes, or sneaking a square after dinner with a warm cup of coffee, this recipe delivers that classic fudge experience without the stress or complexity. No candy thermometers. No tricky timing. Just an easy, luxurious treat anyone can make — and everyone will love.
Why You’ll Love This Recipe
- Dreamy, creamy texture that melts on your tongue.
- Soft fudge + silky caramel equals a perfect flavor balance.
- Foolproof preparation — no candy thermometer required.
- Ideal for gifting or serving at holidays and celebrations.
- Simple ingredients you can find anywhere.
- Beautiful layered look that cuts into gorgeous squares.
Ingredients
- 2 cups white chocolate chips
- 1 can (14 oz) sweetened condensed milk
- ½ cup unsalted butter
- 1 teaspoon vanilla extract
- 1 cup soft caramels, unwrapped
- 2 tablespoons heavy cream
- Pinch of sea salt (optional, for a salted caramel touch)
Equipment Needed
- 8×8 inch baking dish
- Parchment paper
- Saucepan
- Microwave-safe bowl (optional)
- Spatula
- Mixing spoon
- Sharp knife
Step-by-Step Instructions
1. Prepare the Pan
Line an 8×8 inch pan with parchment paper, leaving an overhang for easy lifting. Lightly grease the paper.
2. Make the Fudge Base
Add white chocolate chips, sweetened condensed milk, and butter to a saucepan over low heat.
Stir constantly until smooth and fully melted.
Remove from heat and mix in vanilla.
Pour half of the mixture into the lined pan and spread evenly.
3. Make the Caramel Layer
In a saucepan or microwave-safe bowl, melt the soft caramels with the heavy cream.
Stir until smooth and pourable.
Spread gently over the fudge base.
4. Add the Final Layer
Pour the remaining fudge mixture over the caramel.
Smooth the top and sprinkle sea salt if desired for a sweet-salty finish.
5. Chill
Refrigerate for 3–4 hours, or until firm enough to slice cleanly.
6. Slice & Enjoy
Lift the fudge out using the parchment overhang.
Cut into squares with a sharp knife.
Store in an airtight container in the fridge for up to 1 week.
Pro Tips for Perfect Caramel Fudge
- Choose quality chocolate — the flavor and texture truly depend on it.
- Stir constantly while melting to avoid burning the chocolate.
- Let the fudge fully chill before slicing for clean, neat squares.
- Try swirling caramel on top before chilling for a gorgeous presentation.
- Add nuts for a crunchy contrast if desired.
Variations & Substitutions
- Salted Caramel Fudge: Add sea salt to each layer.
- Nutty Fudge Squares: Add chopped pecans or walnuts to the top layer.
- Chocolate Caramel Fudge: Replace half the white chocolate with semisweet chips.
- Peanut Butter Caramel: Add a swirl of peanut butter into the top fudge layer.
- Holiday Version: Add crushed candy canes on top before chilling.
Serving, Pairing & Storage
Serving
Perfect with:
- Coffee
- Hot cocoa
- Tea
- Holiday dessert boards
Serve chilled for the cleanest cuts and smoothest texture.
Storage
Refrigerate in an airtight container for up to 1 week.
Freezing
Freeze for 2–3 months. Thaw in the refrigerator before serving.
Gifting
Wrap pieces in parchment squares and tie with ribbon for lovely homemade treats.
FAQ
Can I use caramel sauce instead of soft caramels?
No — sauce won’t set properly. Soft caramels create the perfect firm layer.
Can I double the recipe?
Yes! Use a 9×13 pan and double all ingredients.
Why did my fudge turn grainy?
It may have overheated. Melt gently over low heat and stir constantly.
Can I use dark chocolate instead of white?
Yes, but the flavor will be richer and less sweet — delicious either way.

Creamy Caramel Fudge Squares
Ingredients
Equipment
Method
- Line an 8×8 pan with parchment and lightly grease.
- Melt white chocolate, condensed milk, and butter over low heat.
- Remove from heat and add vanilla. Spread half in the pan.
- Melt caramels with heavy cream; spread over fudge.
- Spread remaining fudge over caramel. Add sea salt if desired.
- Chill 3–4 hours until firm.
- Lift from pan and slice into squares.
Notes