First, it’s important to prepare your workspace. Grab a 9-inch square pan and line it with foil, then spray it lightly with nonstick spray. This ensures that your fudge releases easily once it’s set.
In a large mixing bowl, combine 2 pounds of powdered sugar and ½ cup of unsweetened cocoa powder. Use a whisk to mix them thoroughly. If you see any lumps in the mixture, feel free to sift them out to ensure a smooth fudge.
Now, let’s melt our main components. In a medium saucepan, add 1 cup of sliced unsalted butter and 8 ounces of block American Cheese. Heat over medium, stirring frequently. Watch closely as it melts. You want a smooth, creamy texture without any lumps.
Once the butter and cheese have melted together, remove the saucepan from the heat immediately. It’s crucial not to let this mixture cool too much, as it needs to blend seamlessly into the sugar mixture.
Quickly pour the melted mixture into the bowl with the powdered sugar and cocoa. Stir vigorously to combine everything. Make sure the mixture is fully incorporated; a few lumps here and there are fine, but you want it mostly smooth.
Add 1 teaspoon of vanilla extract to the mixture and stir again. If you’re using 1 ½ cups of chopped nuts, now is the time to fold them in. Mix until evenly distributed throughout.
Transfer the fudge mixture into your prepared pan. Use a spatula to press it down firmly and evenly. The surface should be smooth and flat to ensure even cooling.
Let your fudge chill in the refrigerator for about 1 to 2 hours. This will allow it to set properly. Feel free to check on it occasionally, but resist the urge to disturb it too much!
After it has set, remove the fudge from the pan by lifting the foil. Place it on a cutting board and slice it into squares. Enjoy your tasty creation!