Line 8-inch square pan with Foil, with ends of foil extending over sides.

Microwave chocolate, butter, and water in large microwaveable bowl on HIGH 2 min. or until butter is melted.

Add dry pudding mix and stir until mixture becomes thick and creamy.

Add sugar, 1 cup at a time, stirring after each addition until well blended.

Add candies to fudge and stir quickly (don't overstir or candy color will bleed out onto fudge).

Press onto bottom of prepared pan with back of spatula.

Refrigerate 2 hours or freeze 30 minutes- until firm.

Eat or pack in airtight container with parchment paper between each layer and store in refrigerator.