Butterscotch Confetti Squares
These easy no-bake Butterscotch Confetti Squares have been a family favourite forever! These creamy butterscotch peanut butter squares are loaded with colourful mini marshmallows and are so easy and quick to make with just a few simple ingredients.
No one in our family had any idea what the real name of these squares were, we only knew that my Grammie made them for my Grampie all the time as they were his favorite, so they became known as Grammies favourite squares. They’re also known as peanut butter marshmallow squares.
The recipe was passed to my mom who continued to make them for us, but usually only at Christmas, which makes them a special treat.
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Why you will love these butterscotch treats
- No-Bake – These are perfect to make at Christmas time! They are easy and take very little hands on time. The set in the refrigerator, leaving you oven free for baking more yummy recipes like these Raspberry Jam Bars
- Perfect for Holiday Cookie Platters – I mean really, how pretty are these?! I think it was the brightly coloured marshmallows that always drew me to these as a kid, and not much as changed!!
- Perfect for hostess gifts – These are the perfect treats to make at the last minute hostess gift! Why not make them a pretty 8 inch pan and wrap the whole thing up in cellophane. Add a pretty bow and voila! A gift that will be enjoyed and appreciated.
- Freezer Friendly – Can be refrigerated for up to 4 days or frozen for up to a month in an airtight container for best flavour.
The trick to smooth Confetti Squares
Even though these confetti squares are super simple to make, I could not make them quite as good as my mom, so I asked her to come by while I made them, and the trick to getting the smoothest, creamiest squarers was a very simple one:
Use good quality butterscotch chips! Here in Canada the brand that works best is Chipit’s brand. In the US try Guittard or Nestle Toll House Butterscotch Chips. Cheaper brands tend to be somewhat grainy and don’t melt smoothly and evenly.

So, under Mom’s watchful eye, I made these absolutely perfect….using Chipits brand butterscotch chips. Or maybe it was just because Mom was in the kitchen with me!
Just Four Ingredients
These no-bake Christmas squares need just 4 simple ingredients to make:
- I package Chipits butterscotch chips
- smooth peanut butter
- pastel coloured mini marshmallows
- butter
Kitchen Tools You Will Need
- A double boiler or a pot and stainless steel bowl made to nestle into the top of the pot
- 8 inch square baking pan
- rubber spatula
Add Chipits butterscotch chips, peanut butter, and butter to the top of a double boiler of simmering water. Stir with rubber spatula until just melted and smooth.
Add marshmallows and stir until combined and marshmallows are well coated.
Spread mixture into 8 inch square pan and refrigerator about 2 hours, until firm.
Cut into 16 large or 25 small squares. Store in the refrigerator for up to a week, or freeze for up to three months.

I mean really, how could anyone resist these colour gems?! Smooth and creamy, these confetti squares will be a hit at a Christmas cookie exchange too!
More No-Bake Holiday Treats

Peanut Butter Butterscotch Confetti Squares
Ingredients
- 1 300 gram pkg Chipits brand butterscotch chips
- 1/2 cup smooth peanut butter
- 1/4 cup unsalted butter
- 1-2 cups multicoloured fruit flavoured mini-marshmallows
Instructions
- Spray an 8 inch baking pan with non-stick spray and set aside
- Bring a couple of inches of water to a boil in the bottom of a double boiler and reduce to simmer.
- Place Chipits, peanut butter and butter in the top pot and place over simmering water. Stir, until everything is melted and smooth. Remove from heat.
- Add 1 cup or two of mini-marshmallows (I use about 1 1/2 cups) to the mixture and stir until all the marshmallows are coated and evenly dispersed.
- Turn mixture in the prepared baking pan and spread evenly
- Refrigerate for 2 hours, or until set-up and firm
- Cut into 16 larger or 25 small squares
- Store in the referigerator for up to a week













Maureen, my Gram always made these at Christmas as well, and so did my Mom. We called them peanut butter marshmellow squares. How origial? I have tried and tried to make them myself, and just can’t seem to do it. They never taste just okay, they taste bad. My Mom won’t make them anymore because she doesn’t like them, and my Gran can’t at this stage in her life. Oh how I miss them! LOL!
I love these too! I rarely make them now since my ‘kids’ are grown and gone, and dear hubby has no interest in sweet treats. When my kids do make it back to Ontario, they are busy visiting their old friends, usually over dinner down in TO (haha! I do see them, just not at meal time.) To make matters worse, my 2 girls look at these as not worthy of eating due to being ‘junk food’.
*sigh* I still love ’em as a treat so I make a pan every once in while and cut it up and freeze the pieces for me to eat one at a time (rather than eating the whole pan in one sitting all by myself!)
I am not sure mine would make it the freezer if I made a pan all for myself 🙂