1. Line 8-inch square pan with foil, extending foil over edges of pan.
2. Combine sugar, marshmallow creme, evaporated milk and butter in heavy 3-quart saucepan. Cook over medium heat, stirring constantly, until mixture comes to full boil; boil and stir 5 minutes.
3. Remove from heat; gradually add butterscotch chips, stirring until chips are melted. Stir in nuts and vanilla. Pour into prepared pan; cool.
4. Refrigerate 2 to 3 hours. Remove from pan; place on cutting board. Peel off foil. Cut into squares. Store tightly covered in refrigerator. About 5 dozen pieces or about 2-1/4 pounds candy.
NOTE: For best results, do not double this recipe.