Begin by gathering all your ingredients for the Classic Christmas Toffee: chopped pecans, granulated sugar, vanilla extract, unsalted butter, salt, chocolate chips, and water.

Prepare a 9×9 inch baking dish by lining it with parchment paper and spreading 1 cup of chopped pecans evenly at the bottom.

In a medium saucepan, combine 1 cup of butter, 1 cup of granulated sugar, 2 tablespoons of water, and ¼ teaspoon of salt over medium heat.

Attach a candy thermometer and continue to cook the mixture until it reaches the hard crack stage, around 300°F.

Remove the pot from heat and carefully stir in 1 teaspoon of pure vanilla extract.

Quickly pour the hot caramel mixture over the layer of pecans in the baking dish.

Generously sprinkle 1 cup of chocolate chips over the warm caramel layer.

After about 4 minutes, use a spatula to gently swirl the melted chocolate.

Let the toffee cool completely for about 4 hours at room temperature.

Once set, lift the toffee from the pan and slice it into bite-sized pieces.