When a sexual partner is fisting the other partner in the anus, and fecal matter, or more appropriately, "fudge" is left on the knuckles of the fister.
"I don't much care for fistingLucy because I always get fudge knuckled."
When you put your finger up a butt during sex/foreplay, and you go a little too deep, resulting in a bit of poo on your knuckle.
Dude1: how'd it go with that chick last night?
Dude2: not bad. She wanted me to finger blast her butthole, so I did, but I got a little over zealous and ended up with a fudge knuckle.
Dude1: oh man. that's fucked up!
Dude2: yeah, but she ended up riding me all night so....
When you have uncontrollable rectal leaking and it ends up all over your testicles and inner thighs. You reach down to check what has happened and your hands and knuckles get covered in the devils fudge.
Phil : I am so embarrassed, i ate a dodgy vindaloo last night and it has played havoc with my nether regions.
Damo : how could you tell what had happened?
Phil : i reached down to check and ended up with a bloody fudge knuckle !
Damo : i have to go now, i think i left the iron on....