In a large bowl, using an electric mixer, beat together the cream cheese and powdered sugar until no lumps remain. Set aside.
Melt the white chocolate in a microwave safe bowl, stirring every 30 seconds until fully melted.
Immediately pour the white chocolate into the cream cheese mixture and beat until well combined.
Place a sheet of parchment paper in an 8×8 baking dish, leaving the edges hanging out for easy removal, and pour the fudge into the pan.
Sprinkle the crushed candy canes on top and press gently to be sure they stick.
Chill in the fridge for at least 3 hours. Cut into squares and serve.