Line an 8x8 pan with foil.
In a 3 quart saucepan, melt all the ingredients, except the candy canes, together over low heat. Stir constantly. This will take about 10 minutes.
Pour the melted fudge into the foil lined pan.
Sprinkle with crushed candy canes.
Refrigerate 3-4 hours or overnight.
Remove from pan and foil. Cut into squares.
Store in the refrigerator.