Step 1:

Prepare the pan by lining an 8×8-inch square pan with aluminum foil. Lightly butter the sides and bottom of the foil to prevent sticking.

Step 2:

Divide the sweetened condensed milk equally between two small saucepans, placing just over ½ cup in each pan.

Step 3:

Melt the dark chocolate chips in one of the pans over medium heat. Stir constantly to avoid burning. Once fully melted, remove from heat and mix in the vanilla extract. Pour and spread the mixture evenly into the prepared pan.

Step 4:

In the second pan, melt the white chocolate chips over medium heat, stirring constantly. Once melted, remove from heat and stir in the peppermint extract (if using) and ¼ cup of the crushed candy canes. Carefully spread the white chocolate mixture over the dark chocolate layer.

Step 5:

Sprinkle the remaining crushed candy canes on top of the fudge layers. Allow the fudge to set at room temperature for 4-6 hours, or chill in the refrigerator for 1-2 hours until firm.

Step 6:

Once set, lift the fudge from the pan using the foil overhang and slice into small pieces for serving.

Variations:

• Chocolate Options: Experiment with different types of chocolate, such as milk chocolate or semi-sweet, for varying sweetness and texture.
• Extract Flavors: Swap out peppermint extract with almond or orange extracts for a unique twist.