Chocolate Butterscotch Fudge

1 cup sugar
15 ounces sweetened condensed milk
1/2 cup water
6 ounces semisweet chocolate pieces
6 ounces butterscotch flavored pieces
1/4 cup butter or regular margarine
1 teaspoon vanilla
1 cup chopped walnuts

Combine sugar, sweetened condensed milk, water, chocolate and butterscotch pieces in 3 quart heavy saucepan.

Cook over medium heat, stirring constantly, to soft ball stage (234F) Remove from heat. combine butter and vanilla in mixing bowl. Pour hot mixture into bowl.

Beat with electric mixer at high speed until mixture starts to thicken. Stir in walnuts. Spread into greased 9 inch square baking pan. Cool and cut in 1-1/2 inch squares.

Makes 36 pieces.