Line an 8 x 8 x 2-inch dish with parchment paper or aluminum foil and set aside.
In a medium-sized mixing bowl, add 1 (16-ounce) bag white chocolate chips, ½ cup marshmallow cream, and 1 teaspoon vanilla extract.
In a medium-sized saucepan, add 2 cups granulated sugar, 1 cup evaporated milk, and ½ cup unsalted butter. Stir and heat over the stove on medium-high heat and bring the mixture to a boil. Boil for 10 minutes, stirring occasionally with a wire whisk.
Remove the sugar mixture from the heat and pour over the white chocolate chips, marshmallow cream, and vanilla. Stir with a spoon to incorporate. Then, use an electric mixer to mix until almost set.
Pour the fudge into the prepared dish. Place into the refrigerator for a couple of hours to set. Cut into 2-inch squares and enjoy!