Name: White Chocolate Caramel Fudge Recipe
Prep time: 10 min
Cook time: 15 min
Total time: 2 h 25 min
Cuisine: American
Ingredients: 24 ounces white baking chips (Toll House Premier White Chips, 680 grams); 2½ tablespoons heavy cream; 14 ounces sweetened condensed milk (396 grams); 25 individually wrapped caramels, unwrapped; 1½ tablespoons heavy cream

Jump to Recipe· 4.1 from 14 reviews

I absolutely adore making this White Chocolate Caramel Fudge Recipe whenever I need a sweet treat that feels indulgent but is surprisingly simple to prepare. The creamy white chocolate perfectly balances the rich, buttery caramel, creating a luscious dessert that melts in your mouth. Every bite has that silky smooth texture I crave, and I love how effortless it is to whip up with just a handful of ingredients. Sharing this recipe with my friends always feels like gifting a little slice of happiness!

Why You’ll Love This White Chocolate Caramel Fudge Recipe

From the first time I made this fudge, I was hooked by its incredible flavor profile. The sweetness of creamy white chocolate combined with the deep, warm notes of buttery caramel creates a luxurious taste experience that’s both comforting and sophisticated. It has the perfect balance—not too sweet, with just enough richness to satisfy any sweet tooth. What really gets me excited is how the textures work together: soft, chewy caramel pockets nested inside velvety white chocolate fudge.

Another thing that makes me recommend this recipe over and over again is how incredibly easy it is to prepare. I love recipes where the ingredients are simple, yet the result looks and tastes like something from a gourmet candy shop. Plus, it’s a fantastic treat for any occasion—from cozy family nights to festive holiday gatherings or even as a thoughtful homemade gift. Once you try it, I’m confident you’ll agree this is unlike any fudge you’ve made before.

Ingredients You’ll Need

A wooden board holds a layer of white parchment paper with 15 square pieces of creamy fudge, each showing a smooth swirl pattern of light caramel and white colors mixed evenly on the top layer. Around the board, there are nine extra fudge squares scattered freely. To the upper left, a white bowl is filled with individually wrapped caramel candies in clear plastic, while a white bowl to the upper right contains many small, round white candy melts with some scattered outside the bowl. The entire setup rests on a white marbled surface, creating a clean and bright scene. photo taken with an iphone --ar 4:5 --v 7

The beauty of this White Chocolate Caramel Fudge Recipe is how straightforward the ingredient list is, yet each component plays an essential role in creating that perfect texture and flavor harmony. Using quality white baking chips ensures silky smoothness, while sweetened condensed milk and heavy cream give that creamy body and richness. The individually wrapped caramels add those delightful chewy bursts that make every bite special.

Pro Tip ✨

Check out the full list of ingredients and measurements in the recipe card below.

White baking chips (24 ounces): I recommend using quality brands like Toll House for smooth melting and rich flavor.
Sweetened condensed milk (14 ounces): This adds sweetness and a creamy texture that binds the fudge perfectly.
Heavy cream (4 tablespoons): Divided for two uses—part goes into the fudge for added creaminess, part into the caramel for a luscious finish.
Individually wrapped caramels (25 pieces): Unwrapped and nestled in the fudge, they provide delightful chewy pockets of intense caramel flavor.

Directions

Step 1: Line an 8×8-inch square baking pan with parchment paper, leaving some overhang on the sides to easily lift the fudge out later.

Step 2: In a medium saucepan over low heat, combine the white baking chips, sweetened condensed milk, and 2½ tablespoons of heavy cream. Stir constantly until the mixture is smooth and all the chips have melted. This should take about 5 to 7 minutes; be patient and keep the heat low to avoid scorching.

Step 3: Pour half of the melted white chocolate mixture into the prepared pan, spreading it evenly with a spatula.

Step 4: Unwrap the caramels and place them evenly over the white chocolate layer. Then, in a small saucepan, melt the remaining 1½ tablespoons of heavy cream together with the caramels over low heat, stirring constantly until smooth and creamy.

Step 5: Drizzle or gently spread this warm caramel mixture over the layer of caramels in the pan, making sure it’s evenly distributed.

Step 6: Pour the remaining white chocolate mixture over the top and spread it out smoothly. The layers will meld slightly, creating beautiful caramel swirls inside the fudge.

Step 7: Refrigerate the fudge for at least 4 hours, or until fully set. For best results, I like to leave it overnight.

Step 8: Once set, lift the fudge out of the pan using the parchment overhang. Cut into small squares with a sharp knife. Clean the knife between cuts for neat edges.

Servings and Timing

This White Chocolate Caramel Fudge Recipe yields about 36 small squares, perfect for sharing with friends or keeping as a special treat at home. The prep time is around 15 minutes, with an additional 10 minutes of active cooking time. Keep in mind the fudge requires a resting period of at least 4 hours in the fridge to set properly, so plan ahead for that total time of about 4 hours and 30 minutes.

How to Serve This White Chocolate Caramel Fudge Recipe

The image shows several square pieces of fudge with a smooth texture and swirls of white and light caramel orange colors on the top and sides. Each piece has about three thick layers, with the base mostly white and the caramel orange swirled evenly around the top layer, creating a marbled pattern. One fudge piece is slightly bitten, revealing a soft inner texture with visible layers of white and caramel orange inside. The fudge pieces rest on a white marbled surface, with a few small caramel candies partially visible in the background. photo taken with an iphone --ar 4:5 --v 7

When I serve this fudge, I love presenting it on a pretty platter with a sprinkle of sea salt on top to highlight the caramel’s buttery depth. It pairs beautifully with fresh berries or even a handful of roasted nuts on the side. For casual occasions, I slice it into bite-sized squares that guests can easily enjoy without utensils.

For beverages, I find a rich coffee or a smooth black tea complements these flavors perfectly, cutting through the sweetness with subtle bitterness. If you’re feeling festive, a dessert wine like a late-harvest Riesling or creamy Irish coffee is an absolute match made in heaven. I recommend serving the fudge chilled or at room temperature to fully enjoy its melt-in-your-mouth texture.

This fudge is a fantastic addition to holiday dessert spreads, bridal showers, or even as an unexpected sweet ending to a family dinner. Because the flavors are so rich, smaller portions go a long way, making it easy to indulge without feeling overstuffed. I like to garnish mine with a few delicate edible flowers for an elegant touch when giving it as a gift.

Variations

One of my favorite things about this White Chocolate Caramel Fudge Recipe is how easy it is to customize. If you’re avoiding dairy, you can swap the heavy cream with a coconut cream alternative and opt for dairy-free white chocolate chips. This adjustment gives a subtle coconut undertone, which pairs beautifully with the caramel. For a completely vegan twist, look for plant-based condensed milk substitutes or make your own using cashews.

If you want to play with flavor, try adding a pinch of flaky sea salt to the top right before chilling for a salty-sweet contrast that never gets old. For a nutty flair, fold in chopped toasted pecans or almonds into the fudge base before layering. I also love swirling in a teaspoon of espresso powder to intensify the chocolate flavor and add a slight bitterness that balances the sweetness.

For different textures, you might try heating the fudge mixture in a double boiler instead of directly on the stove to give you more control over melting, especially if you’re working with delicate chocolate. Another fun variation is to mix in small chunks of dried fruit like cranberries or cherries for bursts of tartness that brighten up the rich caramel and white chocolate.

Storage and Reheating

Storing Leftovers

After enjoying your White Chocolate Caramel Fudge, I recommend storing any leftovers in an airtight container at room temperature for up to one week. If your kitchen is warm, it’s better to keep the fudge in the fridge to avoid melting—just be sure to bring it back to room temperature before serving so it’s soft and luscious again. I find wrapping the pieces individually in parchment paper inside the container helps prevent sticking.

Freezing

This fudge freezes wonderfully, which makes it great for making in advance or saving for later. To freeze, cut the fudge into squares and layer them with parchment paper in an airtight freezer-safe container. It keeps well for up to three months. When you’re ready to enjoy it, thaw the pieces in the refrigerator overnight and then bring them to room temperature before serving—this helps maintain their creamy texture and flavor integrity.

Reheating

I generally don’t recommend reheating fudge with direct heat, as it can become grainy or lose its smooth texture. Instead, if you want it softer, just leave the fudge at room temperature for 20 to 30 minutes before serving. If you’re in a hurry, a quick 10-second zap in the microwave on low power works too, but keep a close eye to avoid melting completely. Patience is key to preserving that silky texture I love so much.

FAQs

Can I use regular white chocolate instead of baking chips?

While you can use regular white chocolate bars, baking chips are formulated to melt more smoothly and reliably without seizing. If you decide to use standard white chocolate, chop it finely and melt gently in a double boiler to avoid burning or clumping.

Is it possible to make this recipe nut-free?

Absolutely! This recipe as written contains no nuts unless you add them as a variation. Just be sure your caramel candies and white chocolate chips are processed in a nut-free facility if allergies are a concern.

How long does the fudge stay fresh?

Stored properly in an airtight container at room temperature, this fudge stays fresh for about one week. Refrigerating can extend that to two weeks but may slightly affect texture, so I recommend consuming it sooner for the best taste.

Can I make this recipe larger or smaller?

Yes! The recipe scales well—just adjust the quantities of each ingredient proportionally. Keep the cooking times roughly the same and use an appropriately sized pan for even setting. I like using an 8×8 inch pan for this amount because it yields nicely sized pieces.

What’s the best way to cut fudge without it sticking or crumbling?

Use a sharp, heavy knife and wipe it clean with a hot damp cloth between cuts to get neat edges. Letting the fudge come to room temperature before slicing helps minimize crumbling and sticking as well.

Conclusion

I truly hope you enjoy making and sharing this White Chocolate Caramel Fudge Recipe as much as I do. It’s one of those special treats that feels like a little luxury baked right into every bite. Whether you’re gifting it to friends, serving it at a holiday party, or sneaking some for yourself, this fudge never fails to bring smiles. Give it a try—you might just find your new favorite indulgence!