Delicious peppermint fudge with crushed candy canes is an extra festive Christmas treat

Fresh homemade peppermint fudge

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This amazing peppermint fudge recipe from the 80s combines the flavor of peppermint with creamy white chocolate for a treat that practically tastes like Christmas. It’s a popular treat to give as a gift, or to serve at holiday parties. 

The recipe isn’t hard to make, needs only basic ingredients you can find at any grocery store, and uses simple techniques that almost anyone can follow.

Sugar and white chocolate serve as the base. You can chop up a block of white chocolate, or, easiest of all, simply use white chocolate chips. (Note: Be sure not to use white confectionary coating/almond bark/vanilla candy coating — it won’t work well for this recipe.)

Marshmallow creme helps provide a smooth texture, and the most surprising ingredient — the half cup of sour cream — gives it a rich flavor that balances the sweetness of the other ingredients. 

Then of course, a bit of peppermint extract gives this candy cane fudge a distinctive sweet mint flavor, while crushed candy canes (or peppermint candies) add texture, color and a cool burst of flavor.

It’s never a bad idea to use a candy thermometer, but it’s not required — but be sure to keep a close eye on your mixture.

And when it’s all blended and in the prepared pan, let it completely cool at room temperature for the creamiest, smoothest fudge.

Close-up peppermint fudge recipe with white chocolate

Peppermint fudge: Retro recipe from 1987

Adapted from the North Adams Transcript (Massachusetts) December 9, 1987

Creamy homemade fudge, one of the sweetest holiday traditions, is a favorite for gift-giving, enjoying with a cup of cheer, or serving as an after-dinner indulgence.

No matter how it’s served, and whether for Christmas or any other time of year, fudge is always more special when it’s created in the home kitchen.

Tempting, perfect-every-time fudge is no longer a mystery known only to experienced home cooks. Now, even first-time fudge-makes can find sweet success thanks to a “secret” ingredient: marshmallow creme. The creme streamlines preparation, ends tiresome beating, and ensures a velvety smooth texture every time.

How to make peppermint fudge, step-by-step

Crush mini candy canes or peppermint candies

Before the crushing commences, unwrapped mini candy canes were placed on a cutting board underneath some plastic wrap. (A plastic bag will also work.)

A meat tenderizer is shown here, but you can also use a rolling pin. No matter the tool, you will end up with many different sizes of crushed candy, which is a good thing! Just try not to let any piece be bigger than about the size of a pea.

Making homemade peppermint fudge

Prep fudge mixture

Once your peppermint candy is crushed, grab a heavy saucepan and add in some sugar, sour cream, and butter.

Bring everything to a boil while stirring constantly. Keep stirring and boiling for about 5 minutes or until a candy thermometer reads 234F. This will prevent the mixture from scorching.

Once it’s reached the right temperature, remove the saucepan from the heat. Next, add in the white chocolate chips, marshmallow fluff, and peppermint extract. Give everything a good stir until it’s well combined and looking creamy.

Making homemade peppermint fudge

Add the crushed peppermint candy canes

After all the other ingredients are combined, it’s time for the last ingredient: the crushed candy — one of the most important ingredients of this fudge.

ALSO SEE: No-cook peppermint patties

Making homemade peppermint fudge

Stir in the crushed candy until it’s evenly distributed

Making homemade peppermint fudge

Place the fudge in a prepared pan or two

How big a pan you use (or how many pans) is really a matter of how thick you’d like the fudge. Regardless, try to pat the fudge mixture down so it’s fairly even on top, and there are as few as possible bubbles or gaps in the pan.

While optional, we recommend lining the pan with aluminum foil or parchment paper, leaving an overhang that you can use to lift the entire block of fudge from the pan after it’s set.

Making homemade peppermint fudge

Cover and cool it

Cover with plastic wrap, and let the white chocolate peppermint fudge cool completely at room temperature.

Unwrapping the cooled peppermint fudge

Remove from the pan and start to cut

It will be easier to cut up the fudge if you don’t have to use your knife at an angle to work around the edges of the pan.

Place the cooled fudge on a cutting board and peel off the foil or parchment paper. Then plan your slice size, and press down using a sharp knife with a long blade, as shown below.

Cutting peppermint fudge with candy canes

The first cuts will show the peppermint chunks

Cutting peppermint fudge with candy canes

Complete the cuts

After you cut the fudge in one direction, cut it the other way to create small pieces.

A typical guideline is to make each piece about 1 ounce — meaning 16 pieces per pound. But you can make them as thick, thin, long, short or shaped any way you like!

Cutting peppermint fudge with candy canes

A bowl full of homemade peppermint fudge

A bowl full of homemade peppermint fudge

Packaging peppermint fudge as a gift

Packaging peppermint fudge as a gift

Peppermint or candy cane fudge: Ready to share!

Packaging peppermint fudge as a gift

ALSO TRY: Rocky Road fudge: Get a classic 1970s recipe

Cutting peppermint fudge with candy canes

Peppermint fudge

Yield: 2 pounds (about 32 pieces)
Prep Time: 20 minutes
Cook Time: 10 minutes
Additional Time: 2 hours
Total Time: 2 hours 30 minutes


  • 2 cups sugar
  • 1/2 cup sour cream
  • 1/4 cup butter or margarine
  • 12 ounces white chocolate chips (or chopped white chocolate)
  • 7 ounces marshmallow cream
  • 1/2 cup coarsely-crushed peppermint candy or candy canes
  • 1/2 teaspoon peppermint extract


  1. Crush candy canes or peppermint candies into small pieces (not too fine - see photos).
  2. In a heavy 2-1/2-quart saucepan, combine sugar, sour cream and butter.
  3. Bring to full rolling boil, stirring constantly.
  4. Stirring constantly to prevent scorching, boil 5 minutes over medium heat, or until a candy thermometer reaches 234 degrees.
  5. Remove from heat.
  6. Add the white chocolate chips, marshmallow fluff and peppermint extract. Beat until well blended.
  7. Fold in the crushed peppermint candy.
  8. Pour into greased 8-inch or 9-inch square baking pan. If desired, sprinkle a little more peppermint candy on top.
  9. Cool at room temperature for at least 2 hours.
  10. Cut into squares.
  11. Store, tightly covered, at room temperature.

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Nutrition Information:
Yield: 32 Serving Size: 1
Amount Per Serving: Calories: 159Total Fat: 6gSaturated Fat: 3gTrans Fat: 0gUnsaturated Fat: 2gCholesterol: 4mgSodium: 17mgCarbohydrates: 28gFiber: 0gSugar: 25gProtein: 1g

Click Americana offers approximate nutrition information as a general reference only, and we make no warranties regarding its accuracy. Please make any necessary calculations based on the actual ingredients used in your recipe, and consult with a qualified healthcare professional if you have dietary concerns.

MORE: The ultimate guide for making perfect fudge like your grandma used to make PLUS 14 famous & delicious fudge recipes

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