Step 1: Grease an 8 or 9" square pan with butter and set aside.
Step 2: Using kitchen shears, chop gumdrops into small pieces. Set aside.
Step 3: In a heavy saucepan, combine candy coating, condensed milk, and salt. Heat over LOW heat, stirring frequently, until candy coating has melted and mixture is smooth (DO NOT turn up the heat, it burns easily!).
Step 4: Stir vanilla into fudge. Mix in chopped gumdrops gradually while stirring to ensure that they don't end up in one big clump.
Step 5: Pour fudge into prepared buttered pan. Let stand at room temperature until firm, about three hours.
Step 6: Cut into small squares and serve.
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