Chop nuts and set aside. Mix sugar, margarine, and milk together in a heavy frying pan and bring to a boil. Reduce heat to low and cook six more minutes, stirring occasionally. Remove from heat, and add chocolate chips and nuts. Stir until fudge begins to form. Quickly add vanilla flavoring. Drop fudge on waxed paper with a teaspoon. Let cool and store in an airtight container! ENJOY!