In a large bowl or stand mixer bowl, beat softened butter and powdered sugar on medium speed for 2 to 3 minutes until light and fluffy.

Add the egg, vanilla extract, and peppermint extract; mix well to combine.

Gradually incorporate the all-purpose flour, adding one cup at a time and mixing on low speed to combine completely.

Scrape down the bowl as needed.

Remove half of the dough, form it into a one-inch-thick disc, wrap tightly in plastic wrap, and refrigerate for at least 1 hour or overnight.

Add red food coloring to the remaining dough and mix on low until fully incorporated.

Knead on a clean surface, form into a one-inch-thick disc, wrap with plastic wrap, and chill for 1 hour.

Preheat your oven to 375°F (190°C) and line two large baking sheets with parchment paper.

Unwrap the dough discs. Pinch off 1/2-tablespoon pieces from each color separately and roll them into 5-inch ropes.

Twist a red rope next to a white rope, pinching the ends to seal and shape into candy cane forms.

Place on baking sheets and refrigerate if the dough becomes too sticky.

Bake for 12 minutes or until the white dough is just lightly golden. Sprinkle crushed candy canes over the cookies if using.

Let cookies cool completely on the baking sheets.

Once cooled, store in an airtight container in a single layer separated by parchment paper for up to 1 week.