No, you can't mix the chocolate chips into the red fudge. It would be so cool if you could because then, when you cut the fudge, there would be "seeds" all through the red and it would look like a real watermelon. I tried this. I tried it a few different ways because I really wanted it to work. But it doesn't. The mini chocolate chips start melting almost instantly. And when they melt, they smear. So instead of the chocolate chips holding their shape, you end up with brown lines throughout your fudge. It's not cute.