In a medium bowl, whisk together flour, baking powder, and salt. In a large bowl, cream butter and sugar until light and fluffy. Add egg, vanilla, and peppermint extract, blending well.

Gradually blend the dry mixture into the butter mixture until combined. Divide the dough in half.

Add red gel food coloring to one half and mix well. Leave the other half plain.

Wrap each half in plastic wrap and refrigerate for 30 minutes.

Preheat oven to 350°F (175°C) and line a baking sheet. Roll pieces of red and plain dough into ropes, twist them together to form candy canes.

Bake for 8-10 minutes until edges are set. Let cool before transferring to a wire rack.

Sprinkle with crushed candy canes or sugar if desired.