Fill a cooking pot 1/3 of the way with water, bring to a simmer, turn down to low heat, and place a large bowl over the pot, ensuring the bowl doesn't touch the water.
Combine chocolate chips, condensed milk, butter, and vanilla extract together in the bowl
Continuing to mix until everything is combined, about 10 minutes.
By the end, ensure that your fudge mixture is smooth and free of any chunks.
Line a baking pan with parchment paper.
Pour the fudge mixture into the pan and smooth with a silicone spatula. Place the pan in the fridge while preparing the caramel layer.
Now it's time to prepare your caramel layer: Fill the cooking pot 1/3 of the way with water again, bring to a simmer, turn down to low heat, and place a large bowl over the pot, ensuring the bowl doesn't touch the water.
Add caramel and heavy cream into the bowl.
Stir the mixture periodically using a silicone spatula.
Melt the caramels, stirring for 15 minutes or until smooth.
Pour the caramel over the chocolate fudge, smoothing gently with a spatula.
Refrigerate for a minimum of 2 hours, or preferably overnight.
Cutting fudge
Remove the fudge from the fridge.
Peel fudge off the parchment paper. Place the fudge on a cutting board. Wear disposable gloves to prevent leaving fingerprints on the fudge.
Using a 5-wheel pastry cutter, score the fudge, then turn the fudge block 90 degrees and score again.
The fudge should now be scored into even squares.
With a large knife, cut the edges of the fudge, wiping the knife with a wet kitchen towel after each cut.
With the edges neatly squared, your fudge block is now ready to be cut into smaller pieces.
Cut the fudge block along the scored lines, wiping the knife with a wet kitchen towel after each cut.
Turn the fudge block 90 degrees and push the pieces back together.
Finish cutting the fudge using the scored guidelines.