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Vanilla Candy Cane Fudge

2 (10 ounce) packages vanilla baking chips

1 (14 ounce) can sweetened condensed milk

1/2 teaspoon peppermint extract

1 1/2 cups crushed candy canes

1 dash red OR green food coloring

Line an 8 inch square pan with foil. Grease the foil. Combine the vanilla chips and condensed milk in a saucepan over medium heat. Stir constantly til almost melted, remove from heat and keep stirring til smooth. When chips are completely melted, stir in the peppermint extract, food coloring and candy canes. Spread evenly in the bottom of the prepared pan. Chill for at least 2 hours, then cut into squares.