Step 1: Prepare the Pan
Line a 9×9 inch baking pan with parchment paper, leaving an overhang on two opposite sides. This “sling” will make it incredibly easy to lift the entire block of fudge out for clean cutting later. Lightly grease the parchment paper.

Step 2: Create the Chocolate Fudge Base
In a medium, heatproof bowl, combine the semi-sweet chocolate chips, the entire can of sweetened condensed milk, butter, and salt. Create a double boiler by setting the bowl over a saucepan of gently simmering water, ensuring the bottom of the bowl does not touch the water. Stir constantly with a spatula until the chocolate and butter are completely melted and the mixture is smooth and glossy. Remove from heat and stir in the vanilla extract. Pour this chocolate base into your prepared pan and spread it into a smooth, even layer.

Step 3: Make the Peppermint Swirl Topping
Immediately rinse and dry the bowl (or use a new one). Combine the white chocolate chips and the ⅓ cup of sweetened condensed milk. Set the bowl over the simmering water again and stir until the white chocolate is completely melted and smooth. Remove from heat and quickly stir in the peppermint extract.

Step 4: Divide and Color
Working quickly before the white chocolate sets, spoon about one-third of the peppermint mixture into a separate small bowl. Add several drops of red gel food coloring to this smaller portion and stir until you achieve a uniform, vibrant pink or red color.

Step 5: The Swirling Masterpiece
Drop alternating spoonfuls of the plain white peppermint mixture and the red peppermint mixture all over the surface of the set chocolate base. Once all the topping is dotted across, use a toothpick or a thin skewer to gently drag and swirl the two colors together, creating beautiful marbled patterns. Be careful not to over-swirl, or the colors will blend into one.

Step 6: Add the Festive Crunch
While the swirl layer is still soft, generously sprinkle the entire surface with the crushed candy canes, pressing them down gently so they adhere.

Step 7: Chill to Perfection
Transfer the pan to the refrigerator and allow the fudge to chill for at least 3-4 hours, or until it is completely firm and set.

Step 8: Slice into “Shots”
Once fully set, use the parchment paper sling to lift the entire block of fudge out of the pan and onto a cutting board. Using a large, sharp knife, slice the fudge into small, rectangular “shot”-sized pieces. For a clean cut, wipe the knife blade with a hot, damp cloth between slices.

Step 9: Serve and Store
Arrange the fudge shots on a platter and serve cool. Store any leftovers in an airtight container in the refrigerator for up to 2 weeks