Cream together the softened unsalted butter and powdered sugar until smooth and fluffy, about 2 minutes.

Add in the room temperature egg, vanilla extract, and peppermint extract, mixing until combined.

Whisk together the all-purpose flour and salt in a separate bowl; gradually mix this into the wet ingredients until a soft dough forms.

Divide the dough in half; leave one half plain and color the other half with red gel food coloring.

Wrap both portions in plastic wrap and refrigerate for at least 1 hour.

Preheat the oven to 180°C (350°F) and line your baking sheets with parchment paper.

Shape teaspoon-sized pieces of both the red and white dough into 10–12 cm ropes, twist them together to form candy canes.

Bake in the preheated oven for 8–10 minutes until just set but not browned; cool for 5 minutes before transferring to a wire rack.

Once cooled, serve or store in an airtight container.