Line a 9" x 9" pan with aluminum foil and set aside. Let the cream cheese come to room temperature.
Heat milk at Medium setting until warm then add sugar. Bring to a rolling boil (Med-High) while stirring constantly with a wooden spoon. Add the marshmallow creme and butter. Bring back to a rolling boil for [5 1/2] minutes by the clock (start timing once the rolling boil resumes). Add the cream cheese to the boiling mixture about 1 minute before the end of the boil. Cut into small sections to allow easy melting.
If you get brown flakes in the mixture then turn down the heat a little.
Remove from heat and add vanilla chips. Stir until creamy and all chips are melted. Now stir in vanilla extract and butter flavor. Mix thoroughly and pour into prepared pan.Spread Jam on top of the fudge then gently marble in with a knife. Cool overnite. Remove from pan, remove foil, cut into squares.