Grease a baking dish (around 9x9 in size).

Crush the candy canes into small pieces (I placed the candy canes in a plastic bag and used a meat tenderizer to easily crush them up.).

Place a medium sauce pan over medium heat with a few inches of water. Place a glass or other heat proof bowl over the top of the pot, making sure the bowl doesn't touch the water.

Pour the condensed milk and butter in the bowl and heat.

Once the butter is melted and milk has thinned, stir in the chocolate chips and salt. Continuously stir the chocolate and allow it to melt and thicken, around 5 minutes. The mixture should be super thick and hard to stir at this point.

Add the peppermint and vanilla extracts and mix well.

Pour the fudge into the baking dish and evenly spread out.

Tap the dish onto the counter for 1-2 minutes in order to allow air bubbles to smooth out.

Sprinkle the remaining candy cane pieces on top.

Refrigerate for at least a few hours to set. Cut into small squares.