Line a 20cm square tin with baking paper.
Put the white chocolate and condensed milk into a medium saucepan. Stir over a low heat until the mixture combines and is smooth.
Take off the heat and stir through the peppermint extract.
Pour the mixture into your tin, sprinkle over crushed candy canes and allow to set in the fridge for around 3 hours.
Once set, remove the fudge from its tin and cut into small squares.