This White Chocolate Caramel Fudge is a creamy, sweet, and salty treat that I make every holiday season and share with friends and family. I first created this version during a blustery December when I wanted something elegant but simple to give as edible gifts. The combination of smooth white chocolate and sweetened condensed milk yields a silky base while crunchy crushed pretzels add texture and a touch of salt that keeps the sweetness from feeling cloying. Caramel bits sprinkled through and on top add little pockets of chew and toasted notes that make every bite interesting. I love that it looks special on a dessert board yet comes together with pantry staples.

I discovered this method while experimenting with a three ingredient base and finding ways to add contrast. The fudge sets firm enough to slice neatly yet soft enough to melt in the mouth. Family members always ask which batch is the one with extra pretzels. It travels well and keeps its flavor for days when stored correctly. If you need a last minute holiday present this is one of my go to recipes because it takes little hands on time and always impresses.

Ingredients

• Unsalted Sweet Cream Butter 1/4 cup: Use a high quality unsalted butter for the smoothest texture. Room temperature or slightly melted so it blends evenly into the chocolate. I like using a genuine sweet cream butter brand for clean flavor.
• White Chocolate Chips 4 cups: Good quality chips melt more evenly. If you prefer a creamier mouthfeel choose couverture style or a brand known for its melting properties. Avoid chips labeled for baking only which can be grainy when melted.
• Sweetened Condensed Milk 1 can 14 ounces: The sugar and milk solids in this can help the fudge set while keeping it tender. Use standard full sugar for reliable results.
• Pretzels 1 cup crushed divided: Use crunchy pretzels for contrast. Crush half into small pieces to fold in and reserve the rest as a crunchy topping. Buy a familiar brand or make your own crushed by pulsing in a bag with a rolling pin.
• Caramel Bits 1 cup divided: Use firm caramel candy bits so they hold their shape when sprinkled on top. Reserve half to fold in and half for the top for visual interest and chew.
• Ground Cinnamon 1 teaspoon: A light dusting on top adds warmth and aroma. Use good quality ground cinnamon and sprinkle very lightly to avoid masking the caramel notes.

Instructions

Prepare the Pan Line a 3 by 6 inch baking pan with parchment paper so that you can lift the fudge out easily after it sets. Lightly oiling the pan first is optional but the parchment alone will prevent sticking and help you slice neat pieces later. Melt the Base In a medium saucepan add the 1/4 cup butter, 4 cups white chocolate chips, and the 14 ounce can of sweetened condensed milk. Heat over medium heat while stirring constantly with a flexible spatula. Watch for the chocolate to soften and then smooth out. The mixture should be glossy and completely homogenous in about 6 to 8 minutes. Avoid boiling. If the mixture becomes grainy reduce the heat and stir until it comes together. Stir in Mix ins Remove the pot from heat and stir in 1/4 cup caramel bits and 1/4 cup crushed pretzels so the mix ins are evenly distributed without melting fully. Folding them in off heat keeps the caramel bits from dissolving and preserves the pretzel crunch. Layer and Top Pour half of the mixture into the prepared pan and spread it gently using an offset spatula. Sprinkle the surface with 1/4 cup crushed pretzels and 1/4 cup caramel bits. Pour the remaining mixture on top and smooth. Finish by sprinkling the remaining 1/4 cup crushed pretzels, the remaining 1/4 cup caramel bits, and a light dusting of 1 teaspoon ground cinnamon. Set and Slice Cover the pan loosely with plastic wrap and set aside at room temperature for a minimum of 4 hours or overnight to set. For firmer texture refrigerate for about 2 hours. Use the parchment to lift the block from the pan and slice into 24 equal pieces with a sharp knife warmed under hot water then dried for clean cuts.

Storage Tips

Store the pieces in a single layer or separated with parchment in an airtight container. At room temperature the fudge stays pleasant for two days. For longer storage keep it refrigerated for up to one week. To freeze wrap individual pieces tightly in plastic wrap then place in a freezer safe container for up to three months. Thaw in the refrigerator overnight before serving. When bringing to room temperature avoid condensation by removing the container only after the confection has fully warmed so the surface remains dry.

Ingredient Substitutions

To make a gluten free version swap in certified gluten free pretzels. For a dairy free option use dairy free white baking chips and a dairy free condensed milk alternative but note the texture will be slightly different. If caramel bits are unavailable chop soft caramels into small pieces and toss them in quickly off heat. Pistachios or toasted almonds can replace pretzels for a nutty crunch. Reduce salt slightly if substituting salted butter and taste as you go.

Serving Suggestions

Serve the pieces on a pretty tray with parchment squares for individual portions. Pair with strong coffee or a dessert wine to cut through the sweetness. For a holiday platter mix in darker chocolates and nut brittle for contrast. Garnish with a tiny sprinkle of flaky sea salt on half the pieces for variety. This also makes a great edible gift when wrapped in cellophane and tied with a ribbon.

Cultural Background

This style of confection is part of a long tradition of condensed milk based sweets that are common in many home kitchens. Sweetened condensed milk is prized for its ability to create creamy textures without tempering chocolate. The use of sweet and salty contrast draws on modern flavor trends that became popular in the late twentieth century. While fudge has roots in candy making traditions the inclusion of white chocolate and pretzel mix ins is a contemporary American adaptation that suits festive gatherings.

Seasonal Adaptations

For winter holidays add a touch of orange zest or crushed candy cane for festive notes. In autumn fold in a teaspoon of pumpkin pie spice instead of cinnamon and replace caramel bits with maple flavored chips. For summer gatherings lighten the flavor profile by adding a handful of freeze dried raspberries for bright acid. Small changes to the toppings instantly shift the mood to match the season.

Meal Prep Tips

Make this in a double batch and portion into small boxes for gifting or quick snacks. Cut into squares and layer with parchment in a container to keep pieces from sticking. If prepping for events do the melting and layering on the day before, then set overnight and slice the next morning. Label containers with date and any allergen notes so guests know what they are enjoying.

This confection has become a holiday staple in my kitchen and I encourage you to make it your own. Whether you package it for neighbors or serve it on a dessert board these little squares always disappear fast and bring joy to gatherings.