Cool slightly before adding marshmallows: Remove the pan from the heat and let the mixture sit for 2–3 minutes, stirring occasionally. You want it hot enough to be pourable but not so hot that the marshmallows completely dissolve. This brief pause helps preserve some marshmallow shape and texture in the finished fudge.
Fold in marshmallows: Measure out 2 cups of the mini marshmallows and gently fold them into the warm chocolate mixture until they’re evenly distributed. Some will melt a bit and some will hold their shape, which gives the fudge that classic, candy-like look and a soft, bouncy bite.
Spread into the tray: Scrape the fudge mixture into the prepared foil tray. Use your spatula to spread it into an even layer, pushing it into the corners and smoothing the top as best you can—the mixture will be thick but workable.
Add the topping: Sprinkle the remaining 1 cup of mini marshmallows evenly over the surface. Gently press them into the fudge with clean fingertips or the back of the spatula so they adhere but still sit visibly on top.
Chill to set: Transfer the tray to the refrigerator and chill for at least 2 hours, or until the fudge is firm enough to slice cleanly. For neater squares, you can chill it longer or even overnight; just cover the tray loosely once the surface is no longer tacky.
Slice and serve: When ready to serve, lift the fudge slab out of the tray using the foil overhang. Place it on a cutting board and use a sharp knife to cut it into small squares or rectangles. Wipe the knife with a warm, damp cloth between cuts for clean edges. Store leftover fudge in an airtight container in the refrigerator for up to 1 week, layering pieces with parchment or wax paper to prevent sticking.
Because this fudge base is so simple, it’s easy to adapt it to your own holiday traditions or pantry. For a slightly more bittersweet profile, swap some or all of the semi-sweet chocolate chips for dark (60–70%) chocolate; the extra cocoa balances the sweetness of the marshmallows and condensed milk. If you prefer a softer, milkier flavor, use milk chocolate chips, but be aware the set will be a bit softer—chill it thoroughly before slicing. To add crunch without changing the core three ingredients too much, you can scatter chopped toasted nuts (pecans, walnuts, or almonds) over the top along with the marshmallows. For a peppermint version, stir in 1/2 teaspoon of peppermint extract with the melted chocolate and sprinkle crushed candy canes over the surface before chilling. A s’mores-inspired variation can be made by lining the bottom of the foil tray with a single layer of graham crackers, then pouring the fudge over them and proceeding as directed. If you’re making this ahead for gifting, cut the fudge into bite-sized squares, place them in mini paper cups, and keep them chilled until you’re ready to pack them into tins; the high sugar content helps them keep well, but cooler temperatures maintain the best texture.