In a medium saucepan, melt butterscotch chips until soft and pliable. To the butterscotch, add marshmallow cream and powered milk, stir using spoon until well combined. Add vanilla and remove from heat, the mixture will be very thick. Transfer mixture into a bowl and knead with hands. Once well combined, take walnut sized pieces and form into finger shapes and place on waxed paper. Dip into melted caramel and roll immediately in chopped nuts, placing back on waxed paper to harden.
Note: For variety you can dip them in melted chocolate.
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