Line an 8×8-inch baking dish with parchment paper, leaving some overhang for easy removal later.

In a medium saucepan over low heat, combine the white chocolate chips and sweetened condensed milk. Stir continuously until melted and smooth.

Remove from heat and stir in the vanilla extract and salt until fully combined.

Gently fold in the chopped cotton candy until evenly distributed throughout the mixture.

If desired, divide the mixture into two bowls. Add a few drops of pink food coloring to one bowl and blue to the other. Mix until you achieve the desired color.

Pour the pink mixture into the prepared pan, spreading it evenly. Then, pour the blue mixture on top, smoothing it out.

Place the baking dish in the refrigerator and let it chill for at least 2 hours or until firm.

Once set, lift the fudge out of the pan using the parchment paper overhang. Cut into small squares or rectangles.

If desired, sprinkle additional cotton candy pieces or colorful sprinkles on top for a fun finish.