Prepare the pan: Line an 8x8-inch baking pan with parchment paper, letting it overhang on two sides for easy lifting. Lightly mist with nonstick spray if you like.
Crush the candy canes: Place candy canes in a zip-top bag and gently crush with a rolling pin.
Aim for small chunks and some peppermint “dust” for texture.
Melt the base: In a medium saucepan over low heat, add chocolate chips, sweetened condensed milk, and butter. Stir constantly until smooth and glossy. Keep the heat low to prevent scorching.
Flavor it: Remove from heat.
Stir in peppermint extract, vanilla, and salt. Start with 1 teaspoon peppermint extract, taste a tiny smear, and add up to 1/2 teaspoon more if you want a stronger mint kick.
Fold in crunch: Stir in 1/2 to 3/4 cup crushed candy canes. They’ll soften slightly in the fudge but still give a pleasant bite.
Optional swirl: If using white chocolate, pour the chocolate fudge into the pan, then drizzle melted white chocolate over the top and use a knife to create swirls.
Top it off: Sprinkle extra crushed candy canes evenly over the surface.
Press down gently so they adhere.
Set the fudge: Let it cool at room temperature for 1 hour, then refrigerate for 2–3 hours, or until firm enough to slice cleanly.
Slice and serve: Lift the fudge out using the parchment. Warm a sharp knife under hot water, wipe it dry, and cut into 1-inch squares. Clean the knife between cuts for tidy edges.