Line an 8x8 inch baking pan with parchment paper or foil, spray with non stick spray and then set aside.
To a microwave safe bowl, add the chocolate chips, butter, and sweetened condensed milk and melt in the microwave in 30 second increments. Make sure to mix in between every time to keep it from burning.
2 cup chocolate chips, 14 oz sweetened condensed milk, 2 tablespoons butter
Once fully smooth, add in the peppermint extract and the vanilla extract and mix to combine.
1/4 teaspoon peppermint extract, 1 teaspoon vanilla extract
Pour the chocolate fudge in the prepared pan and top it with the crushed candy canes. Gently press the candy canes in there to make sure they set.
5 candy canes
Chill in the fridge for at least 2 hours then slice and enjoy!