Line an 8x8-inch baking dish with parchment paper, leaving some overhang for easy removal.

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

Remove the saucepan from heat and stir in the vanilla extract and salt. If desired, add a few drops of food coloring to achieve your preferred shade.

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

Pour the fudge mixture into the prepared baking dish, spreading it evenly.

Refrigerate for at least 2 hours or until the fudge is firm.

Once set, lift the fudge out of the dish using the parchment paper overhang and cut it into squares.