Prepare the Dough:

1. Cream butter and sugar:
   • In a large mixing bowl, beat the softened butter and sugar together until light and fluffy, about 2-3 minutes.
2. Add wet ingredients:
   • Beat in the egg, vanilla extract, and peppermint extract until fully combined.
3. Incorporate dry ingredients:
   • In a separate bowl, whisk together the flour, baking powder, and salt. Gradually add the dry ingredients to the wet mixture, mixing until a soft dough forms.
4. Divide and color:
   • Divide the dough in half. Leave one half plain and color the other half with red gel food coloring, kneading gently to distribute the color evenly. Wrap each portion in plastic wrap and chill in the refrigerator for 30 minutes.

Shape the Candy Canes:

5. Preheat the oven:
   • Preheat your oven to 375°F (190°C) and line baking sheets with parchment paper.
6. Roll and twist:
   • Roll a small piece of red dough and an equal-sized piece of plain dough into ropes about 4-5 inches long. Gently twist the ropes together and curve the top to form a candy cane shape. Place on the prepared baking sheet.

Bake:

7. Bake cookies:
   • Bake in the preheated oven for 8-10 minutes, or until the edges are just starting to set (do not overbake).
8. Cool and garnish:
   • Let the cookies cool on the baking sheet for 2-3 minutes, then transfer to a wire rack. If desired, mix the granulated sugar and crushed peppermint candies, and sprinkle over the cookies while they are still warm.