Step 1: Melt chocolate chips (on defrost (microwave) or over double boiler).
Step 2: In a medium bowl, beat together peanut butter, cream cheese and butter on medium speed of electric mixer until well blended.
Step 3: Add melted chocolate and beat again.
Step 4: Add milk and vanilla and beat until smooth.
Step 5: Gradually add icing sugar and beat after each addition, scraping down sides of bowl as necessary.
Step 6: Stir in walnuts using a wooden spoon.
Step 7: Line an 8x8" baking pan with parchment paper and spoon fudge into pan.
Step 8: Spread to edges.
Step 9: Cover with plastic wrap and refrigerate until firm, about 3 hours.
Step 10: Remove fudge from pan and cut into 36 squares.
Step 11: Cover and store in refrigerator.
Step 12: Fudge will soften if left at room temperature.
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