Line a 13 x 9-inch baking pan with foil; grease lightly.
Microwave morsels and sweetened condensed milk in large, microwave-safe bowl on HIGH (100 percent) power for 1 minute; stir. Microwave at additional 10- to 20-second intervals, stirring until smooth. Stir in vanilla extract. Fold in marshmallows and nuts. Press mixture into prepared baking pan. Refrigerate until ready to serve.
Lift from pan; remove foil. Cut into pieces.
Makes about 4 dozen pieces.
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