Line an 8x8 inch baking dish with parchment paper, leaving some overhang for easy removal.

In a medium saucepan, melt the butter over low heat.

Add the sugar and stir until dissolved. Remove from heat.

Stir in the vanilla extract.

Gradually add the flour and salt, mixing until well combined.

Mix in the sweetened condensed milk and white chocolate chips until smooth.

Fold in the crushed candy canes.

Divide the fudge mixture in half.

Mix the red food coloring gel into one half of the mixture to create the red layer.

Pour the red layer into the prepared baking dish, spreading it evenly.

Place in the refrigerator to chill for about 20 minutes.

After the red layer has set, pour the remaining white fudge mixture over it.

Swirl the white fudge with a small amount of the red mixture to create a pink and white swirl effect.

Sprinkle additional crushed candy canes on top.

Return to the refrigerator to chill for at least 2 hours, or until firm.

Once set, lift the fudge out of the pan using the parchment paper overhang.

Cut into squares and enjoy!