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Preheat oven to 350°F. Spray cavities with non-stick vegetable pan spray. In medium bowl, lightly beat sugar and eggs; beat in butter, milk, vanilla and icing color. Add flour and baking powder, mixing until smooth. Pour batter into cavities, filling one fourth full; place 1 1/2 candy bars length-wise down center of each loaf. Top candy with batter, filling each cavity half full. Bake 15-20 minutes or until loaves spring back when lightly touched. Cool on rack 5 minutes. Turn loaves out of pan; cool thoroughly. Heat ready-to-use decorator icing in disposable decorating bag in microwave at half power. Cut slit in end of bag and drizzle icing over loaf tops.
To decorate, tint portion of fondant red, leave remaining portion white. Roll separate ropes of white and red fondant; twist together to form candy canes. Moisten back of canes with small amount of water and position on loaf tops.