Line an 8” or 9” square pan with parchment paper, leaving enough paper overhang with which to lift chilled square for easy cutting.
Place marshmallows in large bowl. Set aside.
In medium-sized, heavy-bottomed, saucepan set over medium-low heat, melt the butter. Add the peanut butter and stir until blended with the butter. Add the butterscotch chips and stir constantly until chips are melted. Remove from heat and stir in vanilla. Cool mixture to room temperature.
Pour cooled mixture over marshmallows and stir gently to coat marshmallows. Transfer mixture to prepared pan and refrigerate for 2-3 hours to set.
Remove square from pan and peel back parchment. Cut into squares of desired size.
Square may be refrigerated for up to 4-5 days (if it lasts that long!)
Recipe Notes
NOTE: Marshmallows may be refrigerated while liquid mixture is cooling. This will help ensure they keep their shape when combined with the liquid mixture.