Combine milk, sugar and butter in saucepan. Over medium heat bring to a full boil that you cannot stir down. Remove from heat. Add vanilla and chips. Stir until chips are melted.
Stir in cornflakes, coconut and nuts. Spread in waxed paper lined 8x8 inch pan. Chill well before cutting into squares.
The best butterscotch squares I've tasted.
Source: My friend Jean
By Raymonde from North Bay, Ontario
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