Line an 8 x 8 inch cake pan with parchment paper. Allow paper to hang over the sides to use as handles to lift out the fudge
In a medium microwave safe bowl or large measuring cup combine the milk, 1 tsp of the vanilla extract and the monkfruit sweetener. Use a fork and stir to fully combine
Gradually add the xanthan gum in small amounts stirring after each addition to fully combine. Once the xanthan gum is completely added use a fork and stir for about 20-30 seconds to make sure the xanthan gum is fully combined and smooth
Microwave the mixture on high about 1 minutes or until heated through. Use a fork and stir to make sure the mixture is smooth
Microwave on high for 1 more minute or until the mixture is smooth and slightly thickened.
Stir to make sure the mixture is smooth. Add the butter and stir until the butter is completely melted and smooth. The mixture will thicken slightly more while it cools. Measure out 2/3 cup of the warm milk mixture and set it aside
In a medium microwave safe mixing bowl place the keto chocolate chips. Pour the milk mixture over the chocolate chips and stir to coat the chips
Microwave on high for 30 seconds or until the chocolate chips are starting to melt
Use a fork and stir the melting chocolate chips. Microwave on high another 30 seconds or until the chocolate chips are completely melted
Add the remaining 1/2 tsp of vanilla extract and stir to fully combine
Fold in the chopped nuts (or nut free substitute) until they are fully coated with the chocolate
Add the marshmallows and fold in until they are fully coated with the chocolate
Scoop the mixture in to the prepared cake pan and use a spatula to evenly spread the mixture across the bottom of the pan. Gently press the mixture down to make sure it is fully packed in
Place in the refrigerator for about 1 hour or until firm.
When ready to serve cut your desired size pieces. Store leftovers in an airtight container in the refrigerator for up to 5 days