Line an 8×8-inch baking pan with parchment paper, letting it hang over the sides to form a sling. Lightly grease the parchment with a small amount of butter or nonstick spray so the fudge releases cleanly.
In a medium, heavy-bottomed saucepan, add the white chocolate chips, sweetened condensed milk, and 4 tablespoons unsalted butter. Set the heat to low and stir constantly until the chips are almost melted and the mixture looks thick and glossy. Keep the heat gentle to prevent the white chocolate from seizing.
3 cups white chocolate chips, 14 oz can sweetened condensed milk, 4 tablespoons unsalted butter
Remove the pan from the heat. Stir in the fresh lemon juice, lemon zest, lemon extract (if using), and 1/4 teaspoon fine sea salt. The mixture may thin slightly at first; keep stirring until everything is fully combined and smooth. Carefully taste a tiny bit and add a little more lemon juice if you prefer extra tang.
1/3 cup fresh lemon juice, 2-3 teaspoons lemon zest, 1 teaspoon lemon extract, 1/4 teaspoon fine sea salt
If desired, add a drop or two of yellow gel food coloring to the warm lemon fudge mixture. Stir well and add more gel, a drop at a time, until you reach a soft lemon color. A little gel color goes a long way, so start with a very small amount.
yellow gel food coloring
Scrape the lemon fudge mixture into the prepared pan and smooth the top with an offset spatula or the back of a spoon. Set the pan aside at room temperature while you make the marshmallow topping. The fudge will start to thicken as it cools.
In a clean saucepan (or wipe out the one you used), add the mini marshmallows, 1 tablespoon butter, vanilla extract, and a pinch of salt. Melt over low heat, stirring constantly, until the mixture is completely smooth, creamy, and fluffy, like a thick pourable marshmallow cream.
1 1/2 cups mini marshmallows, 1 tablespoon butter, 1 teaspoon vanilla extract, salt
Working fairly quickly while the marshmallow mixture is warm, pour or dollop it over the lemon fudge base. Use a knife or skewer to gently swirl the two layers together, creating a meringue-like pattern without overmixing. If using extra lemon zest, crushed graham crackers, or flaky sea salt, sprinkle them over the top now while everything is still soft.
lemon zest, crushed graham crackers, flaky sea salt
Cover the pan loosely with foil or a lid and transfer it to the refrigerator. Chill for at least 3–4 hours, or until the fudge is firm enough to cut cleanly. For the neatest slices, let it chill overnight.
Use the parchment sling to lift the chilled fudge out of the pan onto a cutting board. With a sharp knife, cut into 1- to 1.5-inch squares, wiping the knife clean between cuts for tidy edges. Serve chilled or let the pieces sit at room temperature for 5–10 minutes for a softer, creamier bite.