Grease an 8 x 8 inch square pan with butter.
Melt the ½ cup butter in a large saucepan over medium heat.
Remove from heat and allow to cool slightly.
Add sugar and egg; stir to blend well.
Put the pan back on the burner and heat over moderate heat, stirring almost constantly until mixture boils.
Allow to boil for one minute, stirring constantly.
Remove from heat.
Stir in vanilla wafers, nuts, butterscotch morsels and vanilla.
Press the toffee-like rubble firmly into the buttered 8 x 8 inch pan.
Press in this toffee-like rubble into the pan firmly.
Refrigerate for several hours or overnight.
Remove from the fridge an hour or so before cutting. Cut in small pieces to serve. You should get about 20 squares from the pan.
Store leftovers (if there are any) in the fridge.