Gather all your ingredients and ensure peanut butter and sweetened condensed milk are at room temperature. Set up a double boiler.

In the double boiler, melt the chocolate chips over medium heat, stirring gently until glossy and smooth, about 5-7 minutes.

In a separate bowl, combine creamy peanut butter, sweetened condensed milk, and vanilla extract using an electric mixer until smooth, about 2-3 minutes.

Pour the melted chocolate into the peanut butter mixture while stirring continuously until fully blended, about another 2 minutes.

Line an 8x8 inch baking dish with parchment paper and pour in the fudge mixture, spreading it evenly.

Chill in the refrigerator for at least 2-3 hours until firm to the touch.

Once set, lift the fudge out of the pan and cut into squares for serving.