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1. Using a serrated knife, cut cake lengthwise in half. Cut each half into eight wedges.For icing::
2. In a heavy small saucepan, cook and stir chopped white chocolate over low heat until melted. Add frosting; heat over low heat, stirring until smooth. Stir in peppermint extract.
3. Insert a fork into the side of a cake piece. Holding the cake over the saucepan, spoon on enough icing to cover sides and top. Using another fork, gently push the cake piece onto a wire rack set over waxed paper. If necessary, spoon icing onto side of cake where fork was inserted. If desired, arrange two peppermint candies on each cake. Repeat with remaining cake pieces, icing, and peppermint candies. Let stand until icing sets. Makes 16 cakes.