In a large mixing bowl, beat 1 cup of softened unsalted butter and 1 cup of granulated sugar together for 2-3 minutes until light and fluffy.

Add 1 large egg, 1 teaspoon of vanilla extract, and ½ teaspoon of peppermint extract (if using) to the creamed mixture; mix until combined.

In another bowl, whisk together 2 ½ cups of all-purpose flour and ½ teaspoon of salt. Gradually mix the dry ingredients into the wet mixture until a dough forms.

Divide the dough into two portions; color one portion with red gel food coloring and chill both portions wrapped in plastic wrap for 30-45 minutes.

Roll pieces of red and white dough into 6-inch ropes, twist them together, and shape into candy canes or wreaths; roll in granulated sugar.

Preheat your oven to 350°F (175°C). Place cookies on a parchment-lined baking sheet and bake for 8-10 minutes until edges are lightly golden.

Let cookies rest for 5 minutes on the baking sheet, then transfer to a wire rack to cool completely.