White Candy Cane Fudge

12 oz. white chocolate, coarsely chopped
14 oz. can sweetened condensed milk
1/4 c. coarsely chopped peppermint candies

Butter an 8-inch square baking pan; line bottom and sides with foil, allowing foil to extend over sides of pan by about 1". Butter foil. Over medium-high heat in top part of double boiler, combine white chocolate and condensed milk. Cook, stirring frequently, until melted and smooth, 5 minutes. Pour mixture into pan; sprinkle candy over the top. Using a knife, lightly swirl candy into chocolate mixture. Refrigerate until firm, about 6 hours or overnight. Cut into 1" squares, diamond shapes, or retangles. Store in refrigerator. Makes about 64 pieces.