1Line a 9- inch square baking pan with foil and butter or butter spray foil.
2Combine the chips and sweetened condensed milk in a heavy saucepan over low heat. Stir until melted and blended well; remove from heat and stir in the peppermint extract,candy canes and food coloring if desired. Spread evenly in bottom of the prepared pan. Chill until set(about 2 hours) then turn fudge onto cutting board; peel off foil and cut into desired number of pieces. Store covered in refrigerator.
For chocolate peppermint:
use 3 cups (18 oz.) semi-sweet chocolate chips
instead of white chocolate.