Line an 8-inch square baking dish with parchment paper, leaving some overhang for easy removal.
In a saucepan over low heat, combine semisweet chocolate chips, sweetened condensed milk, and butter. Stir continuously until the chocolate and butter are melted and the mixture is smooth.
Remove the saucepan from heat and stir in peppermint extract.
Fold in crushed candy canes or peppermint candies.
Pour the fudge mixture into the prepared baking dish, spreading it evenly.
If desired, drizzle melted white chocolate over the top of the fudge for an extra layer of sweetness.
Refrigerate the fudge for at least 3 hours or until set.
Once set, use the parchment paper overhang to lift the fudge out of the dish.
Place the fudge on a cutting board and cut it into squares.
Serve the Chocolate-Peppermint Fudge as a delightful holiday treat or sweet indulgence.
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