1. Line 8x8 square baking pan with parchment paper or aluminum foil. Spray lightly with cooking spray.
2. Combine the white chocolate chips and sweetened condensed milk in a saucepan over medium heat. Stir frequently until chips are melted.
3. Remove from heat and stir in the peppermint extract and candy canes.
4. Spread evenly into prepared baking pan. Top with chocolate chips and gently swirl them into the fudge with a knife. Top with a few more crushed candy cane pieces. Chill for 3 hours, then cut into squares. Store in refrigerator for up to 1 week.