In a large mixing bowl, beat together ½ cup butter and 1 cup powdered sugar until smooth and creamy, about 2-3 minutes. Add 1 egg, 1 teaspoon vanilla extract, and ½ teaspoon peppermint extract, then mix until fully combined.

In a separate bowl, whisk together 2 ½ cups flour and ½ teaspoon salt. Gradually add flour mixture to butter mix, stirring until a soft dough forms.

Split the dough into two equal portions. To one half, add red gel food coloring and knead until the color is even throughout.

Wrap both portions of dough in plastic wrap and chill in the refrigerator for at least 1 hour.

Preheat the oven to 180°C (350°F) and prepare baking sheets by lining them with parchment paper.

Remove chilled dough from the refrigerator. Roll a teaspoon of red and a teaspoon of white dough into 6 inch ropes. Twist them together and curve one end to resemble a candy cane shape.

Bake in the preheated oven for 8-10 minutes until set but not browned. Look for a soft, puffy appearance.

Let the cookies cool on the tray for about 5 minutes, then transfer to a wire rack to cool completely.