|In a 2 quart saucepan cook together first five ingredients, stirring frequently, until mixture reaches 234°F on a candy thermometer or a small amount forms a soft ball in a little cold water.
Add vanilla and nuts and cool in a pan of ice water to 110° F. Beat until fudge loses its gloss.
Pour into a lightly buttered 8x8x2-inch pan and cool. Score and cut when almost cold. Store in a wax paper lined metal can. Will keep for several weeks.