Line an 8x8-inch square pan with parchment paper for easy removal.

In a medium saucepan over low heat, combine the chocolate chips and sweetened condensed milk, stirring frequently until the chocolate is melted and the consistency is smooth.

Pour into the prepared pan using a spatula to spread evenly. The fudge mixture will be thick.

Sprinkle with crushed candy canes over the top of the fudge.

Refrigerate for up to 2 hours, just until set. Use the edges of the parchment paper to lift the fudge out of the pan. Use a sharp knife to cut into squares and serve at room temperature.