Grease a 13" by 9" glass pan with butter or shortening.
Place butter in large saucepot to melt over medium heat.
Once butter is melted, add sugar and evaporated milk to pot. Stir continuously until the mixture reaches 234°F.
Once mixture reaches 234°F, turn off heat and add butterscotch chips to pot. Stir until melted completely.
Mix in marshmallow creme, vanilla extract, and heated water.
Pour completed butterscotch mixture into greased pan.