Line a 9×9? pan with foil and spray with cooking spray. Place the Mini Nestle Crunch bars in an even layer on the bottom of the pan. (You should have 28 on the bottom)
Place chocolate chips, sweetened condensed milk, and peppermint extract in a medium saucepan over low heat. Stir until chips and milk are melted together. Mix in 1/8 cup of crushed candy canes.
Once everything is melted together, spread evenly over the Nestle Crunch Bars in prepared pan. Immediately sprinkle with the remaining crushed candy canes, pressing them lightly into the fudge. Cool until firm. I like to cool the fudge on the counter until it?s room temperature, then cover with plastic and place in the refrigerator to harden completely. Cut into squares and serve.