In a heavy-bottomed saucepan, combine granulated sugar, butter, and evaporated milk. Cook over medium heat, stirring constantly, until butter is melted and sugar is dissolved. Bring to a boil, then reduce heat and simmer for 5 minutes, stirring occasionally.
Remove from heat. Stir in chocolate chips until melted and smooth.
Add marshmallow fluff and vanilla extract. Stir until well combined and smooth.
If using, stir in chopped nuts.
Pour the mixture into the prepared baking pan and spread evenly.
Let cool completely at room temperature, then cut into squares.
Notes
This fudge is best stored in an airtight container at room temperature.