Prepare an 8x8 pan with wax paper and non stick spray. Set aside.

Add enough water to a saucepan where you can rest a bowl on top and not have it touch the water. Bring water to a boil and then reduce to a simmer.

Place chocolate chips and sweetened condensed milk in glass bowl. Place over simmering water and stir often until chocolate is melted and mixture is smooth.

Remove bowl from pan and stir in ½ C pretzel pieces and ½ C m&m's.

Spread mixture evenly into prepared 8x8 pan.

Sprinkle remaining ¼ C pretzel pieces and m&m's over the top and then lightly press ingredients into the fudge.

Refrigerate at least 1 hour before cutting into 1 inch squares.