In a medium saucepan over medium heat, combine white chocolate chips and heavy cream. Stir continuously until white chocolate chips have completely melted. Stir in the half-and-half, vanilla extract and peppermint extract. Stir occasionally until heated through.
Pour into mugs and top with a dollop of vanilla whipped topping and a candy cane.
For a tasty adult drink, add desired amounts of peppermint and white chocolate liqueurs.