
I made these confetti squares for a potluck last weekend and they disappeared faster than anything else on the dessert table! The combination of butterscotch, peanut butter, and those colorful mini marshmallows creates this perfect nostalgic treat that somehow appeals to both kids and adults.
My neighbor's 7-year-old was literally dancing with excitement when I gave her one, and my husband (who claims not to like sweets) ate three when I wasn't looking!
What You'll Need
- Butterscotch chips: These create that distinctive flavor base. Don't substitute with white chocolate - it's not the same!
- Peanut butter: Smooth works best for that silky texture, but crunchy adds interesting texture if that's your preference.
- Butter: Salted butter balances the sweetness perfectly. If using unsalted, add a small pinch of salt.
- Vanilla extract: Just a touch enhances all the other flavors without overwhelming.
- Mini marshmallows: The colorful ones make these truly "confetti" squares. The fruit-flavored ones actually complement the butterscotch surprisingly well.

How I Make Them
Melting MagicI use a heavy-bottomed saucepan over low heat to melt the butterscotch chips, peanut butter and butter together. Patience is key here - rushing with higher heat can make the butterscotch seize up or burn.
Marshmallow MethodThe trick is letting the mixture cool just enough before adding the marshmallows. Too hot and they'll melt completely, too cool and the mixture gets too thick to stir. I usually test with my finger - when it feels warm but not hot enough to burn, it's perfect.
Setting StrategyI line my pan with parchment paper instead of wax paper and leave some overhanging the edges. This makes it super easy to lift the entire slab out for cutting. A quick spritz of cooking spray on the parchment ensures nothing sticks.
Perfect CuttingFor clean cuts, I chill the squares completely, then use a large knife dipped in hot water (and wiped dry) between cuts. This gives those perfect, smooth edges for presentation.
I first tried these at my Canadian friend's house - apparently they're a popular treat in Canada where they're sometimes called "marshmallow squares" or "peanut butter marshmallow squares." Now they've become my go-to for any gathering where I need something quick that looks impressive!
Serving Ideas
These are perfect on their own, but I sometimes serve them alongside vanilla ice cream for an extra-special dessert. They're great for bake sales, classroom treats, or holiday cookie platters. I've even crumbled them over ice cream as a topping - absolute heaven!
Make It Your Own
Try swirling in a tablespoon of Nutella before it sets for a chocolate hazelnut twist. Add a handful of Rice Krispies for extra crunch throughout. For a grown-up version, mix in a few tablespoons of bourbon with the vanilla. Around the holidays, use seasonal colored marshmallows (red/green for Christmas, orange/black for Halloween) for themed treats.
Storage Smarts
These keep beautifully in an airtight container at room temperature for several days, though they rarely last that long! For longer storage, the freezer method works perfectly - just place parchment between layers so they don't stick together. I often make a double batch and freeze half for emergency dessert situations.

Chef's Secrets
- For extra flair, reserve some colorful marshmallows to sprinkle on top just before setting
- A tiny sprinkle of flaky sea salt on top creates an amazing sweet-salty contrast
- If you can't find colored marshmallows, white ones work too - just add a few drops of food coloring to the butterscotch mixture for the confetti effect
These confetti squares are one of those magical recipes that delivers way more than the sum of its parts. Something about the combination of butterscotch and peanut butter creates this irresistible flavor that feels both familiar and special at the same time. And the best part? They're practically foolproof - perfect for when you need a dessert win without any stress!
Frequently Asked Questions
- → Can I use different types of marshmallows?
- Yes, you can use regular white mini marshmallows, or cut regular-sized marshmallows into smaller pieces.
- → Why did my marshmallows melt?
- The butterscotch mixture was likely too hot. Let it cool slightly before adding marshmallows, but work quickly so it doesn't set.
- → Can I make these with almond butter?
- Yes, almond butter or any nut butter can be substituted for the peanut butter.
- → Do these need to be refrigerated?
- Yes, store them in the refrigerator in an airtight container for up to a week.
- → Can I freeze these squares?
- Yes, they freeze well for up to 3 months. Thaw in the refrigerator before serving.