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Combine the chocolate chips, the milk, and the butter in a medium size glass bowl and heat in the microwave for 90 seconds.
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Stir to combine and heat another 15 seconds. Stir and heat an additional 15 seconds, only if needed. There will still be a few pieces of unmelted chocolate in the bowl.
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Stir until mostly smooth with just a few flecks of unmelted chocolate. Add the extract and pecans and stir to combine. Scoop onto a parchment lined tray. Spread with a spatula to approximately 1-inch thickness. Drizzle with caramel sauce. Lightly swirl the caramel into the fudge with a knife or the end of the spatula.
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Chill until ready to serve. Slice into 1-inch squares and store in an airtight container in the refrigerator for up to a week. Enjoy!
