Begin by placing the milk chocolate chips in a microwave-safe bowl. Heat in the microwave in 30-second intervals, stirring in between, until the chocolate is completely melted and smooth. This should take about 1 to 2 minutes total.
Once the chocolate is melted, add the sweetened condensed milk, Baileys Irish cream, and vanilla extract to the bowl. Stir well to combine all the ingredients until you have a smooth and glossy mixture.
Line a 9x9 inch baking pan with parchment paper, leaving a little overhang on the sides for easy removal later. Pour the fudge mixture into the prepared pan, spreading it evenly with a spatula.
Place the baking pan in the refrigerator and allow the fudge to set for at least 2 hours. If you’re in a hurry, you can place it in the freezer for about 30 minutes to speed up the process.
Once the fudge is set, remove it from the pan using the parchment paper overhang. Place it on a cutting board and cut it into squares. Enjoy your delicious Baileys Fudge!