First Step: Prepare the ingredients Gather all necessary ingredients. Roughly chop the shelled pistachios to release their flavor and create pleasing texture throughout the fudge. Line an 8×8-inch square baking pan with foil or parchment paper for easy removal.

Second Step: Melt key components In a microwave-safe bowl, combine white chocolate chips, butter, and water. Microwave on high for 1 minute, stir, and continue microwaving in 20-second increments until completely melted and smooth. Stir well to blend evenly.

Third Step: Mix in dry ingredients Add the instant pistachio pudding mix to the melted chocolate mixture, stirring thoroughly to incorporate. Gradually add powdered sugar, about one cup at a time, mixing well after each addition to avoid lumps and achieve a smooth batter.

Fourth Step: Fold in pistachios Carefully fold in the chopped shelled pistachios to distribute them evenly throughout the fudge mixture. This ensures every bite has that signature nutty crunch and flavor.

Fifth Step: Press and chill Firmly press the fudge mixture into the prepared pan, smoothing the surface with a spatula. Refrigerate for approximately 2 hours, or until fully set and firm to the touch.

Final Step: Cut and serve Use a long, sharp knife to cut the fudge into squares. For cleaner cuts, warm the knife slightly between slices. When cut thinly, this recipe yields about 64 small squares perfect for sharing or gifting. Store leftover fudge in an airtight container in the refrigerator to maintain firmness and freshness.