Butter an 8×8-inch baking dish or spray it with nonstick cooking spray and set aside.
Combine the sugar, milk, and butter in a medium-sized, heavy pot and cook on medium heat until the mixture comes to a boil. Be sure to stir frequently.
Once it has reached the boiling point, boil for about 5 minutes. Stir constantly.
Use a candy thermometer to get the mixture to the soft ball temp of 235°F.
Remove from the heat and stir in the peanut butter, peanut butter chips (if using), marshmallow creme, and vanilla (if using). Stir until the mixture is creamy and smooth.
If using, add the chopped nuts (reserving a few to sprinkle on the top) and mix well.
Immediately pour into the prepared baking dish.
Cool completely and cut as desired.
Store in an airtight container.