1/2 cup butter
1 tablespoon butter for pan
1 cup chunky peanut butter
1 8-ounce package processed cheese (Velveeta), cubed
1 2-pound package confectionary sugar
1 1/2 teaspoons vanilla extract
Line a 13-inch by 9-inch pan with foil and grease with 1 tablespoon butter. Set aside. In a heavy saucepan, combine the peanut butter, cheese and 1/2 cup butter. Cook and stir over medium heat until melted.
Remove from the heat. Gradually stir in confectionary sugar and vanilla until blended. Mixture will be thick. Spread into prepared pan. Chill for two hours. Using foil, lift fudge from pan. Discard foil. Cut into one-inch squares.
Store in an airtight container in the refrigerator. Yields 3 pounds.