Creamy Hot Chocolate Fudge with Marshmallows & Peppermint Crunch

When the holiday season rolls around, my kitchen turns into a little fudge factory, and this Creamy Hot Chocolate Fudge with Marshmallows & Peppermint Crunch is one of my absolute favorites to make. It’s everything I love about curling up with a big mug of hot cocoa — rich chocolate, fluffy marshmallows, and that hint of cool peppermint — all wrapped up in a decadent, melt-in-your-mouth bite. It’s the kind of treat that instantly makes you feel cozy, even if it’s freezing outside.

I love that this fudge feels so festive but is also ridiculously easy to put together. No candy thermometers, no tricky steps, just simple ingredients melted together into chocolatey bliss. Plus, the marshmallows give it a soft, gooey texture, while the peppermint adds that little sparkle of holiday cheer. It’s one of those recipes that looks impressive on a dessert platter but secretly takes less than 20 minutes of hands-on time.

This is also one of my go-to treats for gifting. I’ll wrap pieces up in little boxes or cellophane bags, tie them with ribbon, and watch people’s eyes light up when they take a bite. There’s something about the mix of creamy chocolate, pillowy marshmallows, and crunchy peppermint that just makes it taste like Christmas magic. Honestly, it’s hard to decide whether it’s better to share it or keep it all for yourself… but I usually end up doing a little of both.

Here are some more fudge recipes you might also want to try out:

• Banana Pudding Fudge
• Pecan Pie Fudge
• Firecracker Fudge

Ingredients

• 1 1/2 cups of milk chocolate chips – For a sweet, creamy base that melts beautifully.

• 1 1/2 cups of semi sweet chocolate chips – Adds a rich, slightly deeper chocolate flavor.

• 14 oz can of sweetened condensed milk – The magic ingredient that makes the fudge silky and sweet.

• 3 tbsp of unsalted butter – Gives the fudge that extra smooth, melt-in-your-mouth texture.

• 1/2 cup of hot chocolate mix (around 4 packages) – Brings that classic cocoa flavor right into every bite.

• 1 tsp of vanilla extract – A little splash to round out all the chocolatey goodness.

• 3 cups of mini marshmallows (divided) – Soft, pillowy pockets of sweetness that make this fudge extra fun.

• 1/2 cup of crushed up peppermints (or candy canes) – For a festive crunch and refreshing peppermint kick.

• 1/2 cup of semi sweet chocolate chips – Perfect for drizzling over the top to finish things off.

Recipe Instructions

You can find a printable recipe card at the bottom of this post.

1. Line an 8×8-inch baking dish with parchment paper and set aside. In a double boiler, combine the milk chocolate chips, semi-sweet chocolate chips, sweetened condensed milk, butter, and hot chocolate mix. Stir constantly over medium heat until smooth and fully melted.

2. Stir in 2 cups of marshmallows until completely melted and incorporated. Remove from the heat, add the vanilla, and stir again. Pour the mixture into the prepared baking dish, spreading it evenly.

3. Sprinkle the remaining 2 cups of marshmallows over the top and gently press them into the fudge. Scatter the crushed peppermints evenly on top. Refrigerate for 3 hours.

4. Melt the remaining ½ cup of semi-sweet chocolate in a microwave-safe bowl. Transfer the melted chocolate to a small zip-top bag and set aside. Remove the fudge from the fridge and lift it out of the pan using the parchment paper. Cut into 12 squares. Snip a small corner off the bag and drizzle the melted chocolate over the fudge.

5. Refrigerate for another 5 minutes to let the chocolate set. Serve and enjoy.

My Favorite Ways to Enjoy Hot Chocolate Fudge

• With a hot mug of cocoa on a snowy afternoon. Yes, that’s double the chocolate, and I’m not mad about it.

• Cut into tiny bite-size squares for a little “just because” treat after dinner.

• Chopped up and sprinkled over vanilla ice cream for an easy holiday sundae.

• Wrapped in pretty boxes or bags for a sweet homemade gift that always gets rave reviews.

• Sneaked straight from the fridge when no one’s looking… purely for quality control, of course!

• Added to a holiday dessert board alongside cookies, truffles, and fruit, it always disappears first.

Serving & Storing

• I like to serve this fudge chilled so it holds its shape, but letting it sit at room temperature for a few minutes makes it extra soft and creamy.

• A small sharp knife works best for cutting neat squares. I run it under hot water, dry it, and then slice for clean edges.

• Store the fudge in an airtight container in the fridge, where it will stay fresh for up to a week.

• If you’re making it ahead for gifting, you can freeze it (without the marshmallow topping) for up to two months, just thaw in the fridge before serving.

• Layer pieces between parchment paper if you’re stacking them, so they don’t stick together.

FAQs

Can I use all milk chocolate instead of mixing it with semi-sweet?
You can, but it will make the fudge much sweeter. I like mixing the two so the flavor is rich without being overly sugary.

Do I have to use a double boiler?
Nope! You can melt everything in the microwave in 30-second bursts, stirring well each time, just keep an eye on it so the chocolate doesn’t scorch.

Can I swap the peppermint for something else?
Absolutely! Crushed cookies, toffee bits, or even festive sprinkles work beautifully.

How do I keep the fudge from getting too soft?
Make sure it chills for the full amount of time in the fridge before cutting, and store it in the fridge until serving.

Can I make this ahead of time?
Yes! In fact, it’s even better the next day once the flavors have had a chance to mingle.