Chop the gumdrops: Cut gumdrops into small pieces, dusting the knife with powdered sugar to prevent sticking.

Melt the butter: In a large saucepan, melt the butter over low heat.

Melt the marshmallows: Add the marshmallows to the saucepan and stir continuously until completely melted and smooth.

Combine ingredients: Remove from heat and quickly stir in the chopped gumdrops, white chocolate chips, vanilla extract, and chopped nuts (if using). Mix well to ensure even distribution.

Prepare the pan: Line an 8x8-inch baking pan with parchment paper, leaving an overhang on the sides for easy removal.

Pour and set: Pour the nougat mixture into the prepared pan and smooth it out evenly. Let it cool at room temperature for a few hours or refrigerate for about an hour until firm.

Cut the candy: Once firm, lift the candy out using the parchment paper overhang and place it on a cutting board. Dust the top with powdered sugar, and cut into squares or rectangles using a sharp knife.

Store and serve: Enjoy immediately or store in an airtight container to keep fresh.