Pre-heat a convection oven to 375 Degrees F.
Add candy canes to a food processor and pulse until candy canes turn into a fine powder; Transfer to an airtight container and reserve room temperature.
Stack fillo sheets on top of eachother, cut each sheet in to 12 equal squares; This should give you a total of 48 squares.
Note, fillo dough dries out quickly. While you are not working with the dough cover it with plastic wrap and a damp paper towel to prevent from drying.
Brush a layer of butter over each muffin cup and place a square of fillo in each.
Brush the fillo with butter and layer another square clockwise to create a spiral.
Repeat step 5 an additional 3 times for a total of 4 layers.
Fill each muffin tin with 1 tbsp(s) of vanilla pudding and 0.5 oz of peppermint bark.
Fold in the corners of each lava bite to seal and lightly brush each with additional butter.
Bake for 15 minutes or until golden, Transfer the bites to a cooling rack and allow to cool for 20 minutes.
Garnish each with 1 tsp(s) of candy cane sugar and serve.