Begin by crushing wafers in a Ziploc bag. Add melted butter and mix until well coated. Press onto the bottom of 9×13 dish.
In a medium bowl, beat cream cheese, sugar, 2 tablespoons milk and peppermint extract until well blended. Fold in half of Cool Whip and mix well. Spread over crust.
Make pudding by whisking milk and instant pudding in a bowl until thickened. Pour over cream cheese layer and refrigerate for at least 10 minutes.
Top with remaining Cool Whip and refrigerate for at least 2 hours.
Add crushed candy canes right before serving.