In a large mixing bowl, cream together 1 cup of unsalted butter with ½ cup each of granulated and powdered sugars until light and fluffy, about 3-5 minutes.

Add in 1 egg and 1 teaspoon of vanilla extract, mixing well.

Gradually incorporate 2 ½ cups of all-purpose flour and 1 teaspoon of baking powder until just combined.

Split the dough in half and tint one half with red gel food coloring, mixing until evenly colored.

Refrigerate the divided dough for 1-3 hours, or until firm enough to handle.

Preheat your oven to 350°F (175°C) and line two baking sheets with parchment paper.

Roll about 1 teaspoon of the red dough and 1 teaspoon of the white dough into 5-inch ropes, twisting them together to form a candy cane shape.

Place the shaped cookies on the prepared baking sheets, leaving space between them.

Bake for approximately 8-10 minutes, until lightly golden around the edges.

Remove from the oven and sprinkle with a mixture of granulated sugar and crushed peppermint candy.

Transfer cookies to a wire rack to cool completely.