Preheat oven to 325°.
Beat sugar and egg until mixture forms
slowly dissolving ribbon when beaters are lifted.
Sift flour and cocoa into mixture and blend well.
Stir in melted butter, nuts and vanilla.
Do not overmix.

Spread batter evenly in 8x10" baking pan.
Set into larger pan;
add enough boiling water to larger pan to come halfway up sides.
Bake until fudge is firm and knife inserted in center
comes out moist but clean, about 1 hour.
Let cool. Cut into squares.
Serve with whipped cream.
8-10 servings.