In a large saucepan, combine sugar, cream, butter, and salt. Heat over medium high heat and bring to a boil, stirring continuously.
Continue boiling for 5 minutes, while stirring. Remove from heat.
In a large mixing bowl, add marshmallow cream, white chocolate chips, and vanilla extract.
Pour hot butter mixture over, and turn mixer on low. Blend for 1-2 minutes, until white chocolate morsels have melted, and mixture is smooth.
Fold in chopped candy (reserve about 1 Tbsp of candy to sprinkle over top).
Pour into an 8-inch square baking dish, lined with parchment paper. Sprinkle with remaining candy.
Allow to set, about 4 hours at room temperature. Do not refrigerate.
Cut into pieces and enjoy.
Notes
Line your baking dish with parchment paper before adding the fudge mixture. Once the fudge is set, you can grab the corners of the paper to remove it from the pan and cut squares for serving.
You can chop the candy canes with a knife or place them in a bag and beat lightly with a rolling pin to break the candy canes into pieces. Use red or green peppermint candy canes - or both!
Slice the fudge as you serve it. Only cut your fudge as you plan to use it, leaving the remaining block uncut. This helps keep the fudge as fresh as possible.