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Combine chocolate chips and sweetened condensed milk in bowl. Microwave at 50% power for approximately three minutes, stirring after each minute until smooth. Alternatively, combine chips and milk in saucepan and stir constantly over medium-low heat until smooth.
Pour into greased foil-lined eight-inch square pan and let cool until set. Lift fudge out of pan using the edges of the foil as handles and cut into one-inch squares.