For center: Melt 1 Tbsp. butter in pan on low heat. Add 21 large marshmallows and stir until melted. Add vanilla and 1/2 cup chopped nuts. Beat in enough confectioners sugar to make mixture of kneading consistency. Turn mixture out on waxed paper sprinkled with more powdered sugar. Knead and shape into a 12 inch long roll. Refrigerate to cool.
Place remaining nuts in a 12x4 inch rectangular pattern on a piece of waxed paper.
Combine caramels with remaining butter (1 Tbsp.) and 1 Tbsp. water. Melt over low heat. Pour melted caramel mixture evenly in a thin stream over nuts. Let it cool.
Place marshmallow roll in center. Put hand under the waxed paper and lift caramel around marshmallow center, pressing nuts in carefully. Seal to edges.
Wrap in waxed paper and store in airtight container. Yield 2 dozen slices.
Source: I have been making this every Christmas since an old friend gave me the recipe in the 70's. It is not that hard to make and it is delicious.
By littergitter from NC
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