In a large mixing bowl, cream together 1 cup of softened butter and 1 cup of powdered sugar using an electric mixer until light and fluffy. Add 1 large egg, 1 teaspoon of vanilla extract, and 1 teaspoon of peppermint extract, and mix until well combined.

In a separate bowl, whisk together 2.5 cups of all-purpose flour and 0.5 teaspoon of salt. Gradually add to the wet ingredients, stirring until a soft dough forms.

Divide the cookie dough in half, keeping one half plain and placing the other half in a separate bowl. Add red gel food coloring to the red half and mix until vibrant. Wrap both halves in plastic wrap and chill in the refrigerator for at least 1 hour.

Preheat your oven to 350°F (180°C). Take teaspoon-sized pieces of red and white dough, roll into ropes, twist together to create swirls, and shape into candy cane forms.

Place the shaped cookies on lined baking sheets, leaving space for spreading. Bake for 8-10 minutes, until just set but not browned. Cool on sheets for 5 minutes before transferring to racks.