Step 1: Line a 9-in. square pan with foil; grease the foil with butter and set aside.
Step 2: In a large heavy saucepan, melt chocolate chips and 1 cup milk over low heat; cook and stir for 5-6 minutes or until smooth. Remove from the heat. Add vanilla; stir for 3-4 minutes or until creamy.
Step 3: Spread half of the mixture into prepared pan.
Step 4: Refrigerate for 10 minutes or until firm. Set remaining chocolate mixture aside.
Step 5: In a another heavy saucepan, melt vanilla chips and remaining milk over low heat; cook and stir for 5-6 minutes or until smooth (mixture will be thick). Remove from the heat.
Step 6: Add peppermint extract and food coloring; stir for 3-4 minutes or until creamy.
Step 7: Spread evenly over chocolate layer. Refrigerate for 10 minutes or until firm.
Step 8: Heat reserved chocolate mixture over low heat until mixture achieves spreading consistency; spread over mint layer.
Step 9: Cover and refrigerate overnight or until firm.
Step 10: Using foil, lift fudge out of pan. Gently peel off foil; cut fudge into 1-in. squares. Store in the refrigerator.
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