Preheat your oven to 350°F (175°C) and line two baking sheets with parchment paper.
In a large mixing bowl, cream together the softened butter and powdered sugar until light and fluffy.
Beat in the egg and vanilla extract until combined.
In a separate bowl, whisk together the flour, baking powder, and salt. Gradually add the dry ingredients to the wet mixture, blending until a dough forms.
Divide the dough in half. To one half, stir in the peppermint extract and a few drops of red food coloring until you reach your desired color.
In the other half, add a few drops of green food coloring and mix until combined.
Roll each colored dough into long ropes about 12 inches in length. Lay one red and one green rope side by side. Gently twist them together to form a candy cane shape.
Place the formed cookies on the prepared baking sheets and press crushed candy canes over the top of each one.
Bake in the preheated oven for 10-12 minutes or until the edges are lightly golden.
Allow the cookies to cool on the baking sheets for a few minutes before transferring them to a wire rack to cool completely.
Notes
Arrange the cookies on a festive platter, and sprinkle additional crushed candy canes around for a holiday touch. You can also serve them with hot cocoa for a cozy treat!