Line an 8x8" or 9x9" square baking pan with foil, extending the sides of the foil over the edges of the pan. Set aside.

In a large saucepan, melt the chocolate chips and condensed milk together over medium-low heat, stirring and folding it constantly until melted and smooth. Mixture will be quite thick. Whisk in the vanilla extract and pour the fudge in the bottom of the prepared pan, smoothing it into an even layer. Set aside.

In another large saucepan, melt the white chocolate chips and condensed milk together over medium-low heat, stirring and folding it constantly until melted and smooth. Mixture will also be thick. Whisk in the peppermint extract and pour the vanilla layer over the chocolate layer slowly. Using a butter knife, swirl the fudge layers together. Immediately top with the peppermint baking chips and crushed candy canes.

Refrigerate for at least 3 hours or until set before cutting into squares.