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Line an 8x8 inch baking pan with parchment paper and set aside.
In a medium saucepan, melt the butter over medium heat.
Add the sugar, milk, cocoa powder, and salt. Whisk constantly until the mixture comes to a boil.
Continue to boil, whisking constantly, for 5 minutes.
Remove from heat and stir in the vanilla and chocolate chips until the chips are melted and the mixture is smooth.
Pour the fudge into the prepared pan and smooth the top.
Refrigerate for at least 2 hours before cutting into squares.