Line a 9-inch square pan with foil; grease foil with butter or cooking spray.
In a heavy bottom saucepan, combine semisweet chocolate chips and 3/4 cup sweetened condensed milk over low heat. Stir until melted. Remove from heat, add in vanilla extract.
Stir in 3/4 of the peppermint candy cane pieces and stir.
Spread into prepared pan. Top with remaining peppermint candy cane pieces.
Refrigerate, covered until firm, about 1 hour.
Using foil, lift fudge out of pan.
Remove foil; cut into 1-inch squares.
Store between layers of waxed paper in an airtight container.
Notes
Recipe adapted from Taste of Home Homemade Gifts 2018