Line a 9 inch square baking pan with aluminum foil. Wrap the foil all the way over the edges of the pan.
Spray foil with no-stick cooking spray.
In a medium sized mixing bowl, combine white baking chips, sweetened condensed milk & butter.
Microwave the mixture for 1 minute and then stir. Microwave again for 30 seconds at a time, stirring after each time, until mixture is melted & combined.
Once the mixture is well melted, remove from microwave. Add red food coloring & peppermint extract.
Stir until combined & creamy.
Pour mixture into baking pan & distribute evenly.
Layer crushed peppermint candies on top.
Cover & refrigerate for a minimum of 4 hours.
Once ready, lift the fudge out of baking pan by lifting the edges of the aluminum foil. Slice into squares & enjoy!