In a medium saucepan over medium heat, melt 1/4 cup unsalted butter until fully liquefied. Add the softened cream cheese and stir continuously until the cream cheese softens completely and combines smoothly with the melted butter.

Remove the saucepan from heat. Gradually add 4 cups of powdered sugar to the mixture, stirring thoroughly. If the dough remains sticky, continue adding powdered sugar until it resembles very soft playdough that does not stick to your fingers.

Divide the dough into portions according to desired flavors or colors. Add approximately 1/3 teaspoon of flavor extract and mix well. If desired, add food coloring and knead until consistent.

To make traditional butter mint circles, scoop about 1/2 teaspoon of dough, roll it into a ball, then flatten slightly with the back of a fork. Alternatively, roll out the dough to about 1/4 inch thickness and cut out shapes using cookie cutters.

Optionally, roll the shaped candies in granulated sugar. Arrange the mints on waxed paper and allow to sit for a few hours until set and no longer sticky. Store in an airtight container in the refrigerator.