Line an 8" x 8" pan with parchment paper. Set aside
Place chocolate and sweetened condensed milk in a medium sized microwave safe bowl.
Heat in microwave until chocolate is melted, about 3 minutes, stirring every 30-45 seconds
Stir in extract.
Pour chocolate into prepared pan
Sprinkle crushed candy cane over the top of chocolate mixture
Using the tip of a knife, swirl the top of the fudge to mix in the candy cane.
Cover and refrigerate until completely cooled, about 3 hours
Cut into squares and store in an airtight container in the fridge.