1-First Step: Prepare the pan Start by lightly greasing an 8-inch square baking dish. Then line it with parchment paper or aluminum foil, leaving some overhang on the sides. That overhang will act like a sling later, making it much easier to lift the fudge out of the pan without breaking it. If you want clean, even squares, this small prep step matters a lot. It also helps if you are making the fudge ahead for a holiday tray, a bake sale, or a quick dessert to tuck into the fridge. A lined pan keeps cleanup simple too, which is always welcome on a busy day.

2-Second Step: Melt the peanut butter and butter Place the 1 cup creamy peanut butter and 1 cup unsalted butter in a medium saucepan. Set the pan over medium heat and stir occasionally as the mixture melts together. Keep heating until the mixture is smooth and reaches a gentle boil. This step is the base of the whole 3 ingredient peanut butter fudge recipe feel, even though vanilla and sugar still come later. You want the mixture fully melted and glossy, but not cooked so hard that it scorches. If you are using salted butter, skip the optional salt later unless you want a stronger sweet-salty contrast. For the best texture, avoid natural peanut butter here. Natural varieties often separate and can make the fudge dry or crumbly. A creamy no-stir peanut butter gives you a more reliable, candy-like result.

3-Third Step: Add the sugar and vanilla Remove the pan from the heat. Stir in the 3 cups powdered sugar and 2 teaspoons vanilla extract until the mixture becomes silky smooth and no lumps remain. If you like a slightly deeper flavor, vanilla paste works too. You can also add 1/4 teaspoon salt at this point for balance. Mix steadily and scrape the sides of the pan as you go. If the powdered sugar was clumpy, you may need a little extra stirring time. A hand mixer can help if you want a smoother finish, but a sturdy spoon or spatula usually does the job just fine for this easy peanut butter fudge. If the mixture looks a little thick at first, keep stirring. It should turn smooth and spreadable once everything is fully blended.

4-Fourth Step: Spread into the pan Pour the fudge mixture into your prepared baking dish. Use a spatula to spread it evenly into the corners. Try to keep the top as level as possible so the squares look neat when cut. This is a good moment to add mix-ins if you want to make the recipe your own. Mini chocolate chips, chopped nuts, or a swirl of melted chocolate can all work well. Just fold them in quickly before the mixture starts to firm up.

5-Final Step: Chill, lift, and cut Let the fudge cool at room temperature for several hours, or place it in the refrigerator for about 1 hour until firm. Once it is set, lift it out of the pan using the parchment or foil overhang. Cut it into 1-inch squares with a sharp knife. For cleaner cuts, dip your knife in hot water and wipe it dry between slices. That trick gives you smooth edges and a more polished look, which is nice if you are serving the fudge on a dessert tray or giving it as a gift. If the fudge feels too soft, chill it a bit longer and serve it cold for the best bite.