Step-by-step Instructions:
1. Line an 8×8-inch square baking pan with parchment paper, leaving some overhang on the sides to easily lift out the fudge.
2. In a medium saucepan, combine the white chocolate chips and sweetened condensed milk over medium-low heat. Stir continuously until the chocolate is completely melted and the mixture is smooth.
3. Remove the saucepan from heat and stir in the vanilla and peppermint extracts until well combined.
4. Quickly fold in the crushed peppermint candies, stirring gently to distribute evenly throughout the fudge mixture.
5. Pour the fudge mixture into the prepared baking pan, smoothing the top with a spatula.
6. Sprinkle additional crushed peppermint candies over the surface for garnish.
7. Refrigerate the fudge for at least 2 hours, or until it is fully set.
8. Once set, lift the fudge out of the pan using the parchment paper overhang. Cut into small squares using a sharp knife.