Start by lining an 11 x 7 inch glass baking dish with parchment
In a heavy bottom sauce pan dump 1 can sweetened condensed milk, the semi-sweet chips, and 1 tsp peppermint extract and turn on to a low heat. Do not turn it too high or you may burn your fudge.
Let the mixture heat, stirring regularly. When chocolate is fully melted, and well incorporated, remove from heat and pour into lined baking dish. Usually takes 5-8 minutes over heat to reach this point, but every stove top is different. Just be sure to stir well, and if you notice the chocolate is heating too much and getting thick and crumbly, turn the heat down.
Clean your pan, and start on the second layer by preparing it the same way, adding the white chocolate chips, sweetened condensed milk, and peppermint extract, heat over low heat, stirring constantly, and when chocolate is completely melted, dump it over the first layer.
Using a blender, food processor, or by hand, crush the mini candy canes, and spread over the top of the white chocolate fudge layer.
Let the fudge set up for at least 1 hour, you can put it in the fridge to speed the process up, then slice into squares and enjoy!