Spray an 8x8 or 9x9 baking dish with nonstick cooking spray.
Pour the white chocolate candy melts and the sweetened condensed milk into a large microwave safe dish. Add in the 1 tsp. of peppermint extract.
Heat in the microwave for 1 minute and stir. Heat for another minute and stir again, heat again in 20 second increments stirring if not completely melted.
Immediately pour the melted mixture into the baking dish and sprinkle with the crushed candy canes
Allow the chocolate to cool at room temperature. Once it is cool, place the baking dish in the fridge (covered) to allow the fudge to completely set.