Line your 8x8-inch baking pan with parchment paper or foil, leaving some overhang on the sides. Lightly grease the paper with a little butter or non-stick spray to prevent sticking.
In a microwave-safe bowl, combine the semi-sweet chocolate chips, 1 tablespoon of butter, and 7 ounces (half) of the sweetened condensed milk. Microwave in 30-second intervals, stirring well after each, until smooth and fully melted. Stir in 1 teaspoon of vanilla extract.
In a separate microwave-safe bowl, combine the peanut butter baking chips, remaining 1 tablespoon of butter, and the other half of the sweetened condensed milk (7 ounces). Microwave using 30-second bursts, stirring until silky smooth. Stir in the remaining 1 teaspoon of vanilla extract.
Pour the chocolate mixture into the prepared pan, spreading evenly. Then carefully pour the peanut butter mixture over the chocolate layer. Using a knife or skewer, gently swirl the two mixtures together to create a marbled effect.
Sprinkle 1 cup of miniature marshmallows and the chopped nuts evenly over the top. Press them down slightly to ensure they stick into the fudge as it sets.
Scatter the remaining 1 cup of miniature marshmallows across the top, pressing them lightly into the fudge.
Place the pan in the refrigerator for at least 4 hours, or until the fudge is firm. Once set, use the parchment overhang to lift the fudge out of the pan and cut into bite-sized squares.