Cream Butter and Cream Cheese: In the bowl of a stand mixer fitted with the paddle attachment (or in a large bowl using a hand mixer), beat the softened butter for about 30 seconds until creamy.

Add Sugar: Add the softened cream cheese to the butter and beat until combined. Gradually add the granulated sugar and beat on medium speed for about 30 seconds, until well combined.

Add Egg Yolk, Extract, and Salt: Add the room-temperature egg yolk, peppermint extract, and salt to the mixture. Beat until everything is well combined.

Add Flour: With the mixer running on low speed, gradually add the flour in a steady stream, mixing until just combined. Do not overmix.

Divide and Color Dough: Divide the dough in half. If you have a kitchen scale, each half should weigh about 18 ounces. Return one half of the dough to the mixer bowl (or a clean bowl). Add red gel food coloring to this portion and mix on low speed (or by hand) until the color is evenly distributed and the dough is a vibrant red.

Roll Out Dough:

• Place one portion of dough (either red or white) between two large sheets of parchment paper.
• Roll the dough out into a long rectangle, approximately 1/4-inch thick, 5 inches wide, and 18 inches long. The dough will be soft, but the parchment paper will prevent it from sticking.
• Repeat with the other portion of dough.

Chill Briefly (Optional): If the dough is very soft and difficult to work with, place the rolled-out dough rectangles (still between the parchment paper) in the refrigerator for about 10 minutes to firm them up slightly.

Stack and Roll: Carefully remove the top sheet of parchment paper from both dough rectangles. Place the red dough rectangle on top of the white dough rectangle. Gently use a rolling pin to roll over the stacked dough, melding the two colors together. The combined rectangle should now be about 1/2-inch thick, 5 inches wide, and 18 inches long.

Chill Dough: Wrap the stacked, two-toned dough rectangle tightly in plastic wrap and refrigerate for at least 45 minutes, or until firm enough to slice.

Slice Dough: Unwrap the chilled dough. Using a sharp knife, cut thin strips from the rectangle. Start cutting at the top of the long side and cut across the short side. Each strip should be about 1/2-inch wide and 5 inches long.

Shape Candy Canes:

• Take one strip of dough and gently roll it between your hands to round out the edges.
• Gently twist the dough strip to create a red-and-white spiral pattern.
• Curve one end of the twisted strip to form the hook of a candy cane.
• Place the shaped candy cane cookie on a parchment paper-lined baking sheet.

Repeat and Chill: Repeat the shaping process with the remaining dough strips. If the dough becomes too soft and tears easily, return it to the refrigerator for a few minutes to firm up.

Preheat Oven: Preheat your oven to 350°F (175°C).

Chill Before Baking (Important): Place one of the baking sheets of shaped cookies in the freezer for about 10 minutes while the oven preheats. This will help the cookies hold their shape during baking.

Bake: Bake one sheet at a time for 12-14 minutes. The cookies will not change color much, but they will puff up slightly and lose their raw shine. The bottoms may be lightly golden.

Cool: Let the cookies cool completely on the baking sheet before removing them. They will be fragile when warm.