01 - Line an 8-inch square baking pan with parchment paper, leaving overhang for easy removal.
02 - Combine chocolate chips, sweetened condensed milk, and butter in a medium saucepan over low heat. Stir constantly until the mixture is melted and smooth.
03 - Remove saucepan from heat. Stir in vanilla extract, dried cherries, and walnuts if using until evenly distributed.
04 - Pour the mixture into the prepared pan and smooth the top with a spatula.
05 - Refrigerate for at least 2 hours until fully set.
06 - Lift the fudge from the pan using the parchment paper overhang. Cut into 24 squares and serve chilled or at room temperature.