Line an 8 by 8 inch pan with aluminum foil, and set it next to your stovetop.
Set out your peppermint and measuring spoon, your red food coloring, your measured peppermint chips, and a butter knife next to the pan.
Over medium-low heat, combine the white chocolate chips and the sweetened condensed milk until smooth. Remove from the heat.
3 cups white chocolate chips, 14 ounces sweetened condensed milk
Working quickly, pour the peppermint extract into the fudge mix, and pour half (roughly) of the fudge mixture into the 8 by 8 inch pan. Add a few drops of red food coloring.
1/2 teaspoon peppermint extract, red food coloring
Add the rest of the fudge to the pan. Then add another few drops of food coloring. Gently swirl the fudge with a butter knife. Be careful not to swirl too much or you will have pink fudge.
red food coloring
Quickly pour the baking chips over the top of the fudge. Gently push the chips into the fudge. 1 cup Andes Peppermint Crunch Baking Chips
Refrigerate overnight before cutting into squares. Store in an airtight container at room temperature for up to two weeks.