Preparation / Directions:
1. Line a 9-inch square pan with foil, letting foil extend above pan on 2 sides. 2. Stir milk and butter in medium-size saucepan over low heat until butter melts. Measure 1/3 cup into a small bowl, add vanilla chips and stir until melted. Stir in cherries. Add chocolate chips to mixture in saucepan; stir until melted, returning to heat if necessary. 3. Using half the vanilla mixture, drop small teaspoonfuls into prepared pan, leaving spaces between each. Sprinkle with half the coconut. Spread chocolate mixture evenly on top, then spoon on remaining vanilla mixture. Sprinkle with remaining coconut. Refrigerate at least 8 hours until firm enough to cut. 4. Lift foil by ends to cutting board. Cut fudge in 1-inch squares. Store airtight with waxed paper between layers.
BUTTERSCOTCH CRUNCH VARIATION Proceed through Steps 1 and 2, substituting 2/3 cup butterscotch chips for the vanilla chips and 1 cup thin chow-mein noodles for the dried cherries. Continue through Step 3, substituting butterscotch mixture for vanilla mixture. Sprinkle with 1/4 cup coarsely chopped salted mixed nuts (in place of the coconut). Spread with chocolate mixture; sprinkle with another 1/4 cup coarsely chopped salted mixed nuts. Proceed through Step 4
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