1. Preheat your oven to 350-375°F (175-190°C) and line a baking sheet with parchment paper.
2. In a mixing bowl, cream together butter and powdered sugar until light and fluffy.
3. Add vanilla extract and optional peppermint extract for extra flavor.
4. If using, mix in an egg yolk for added structure and moisture.
5. Gradually add flour, mixing until a smooth dough forms.
6. Divide the dough into two equal portions.
7. Color one portion with red food coloring, mixing until evenly combined.
8. Take a small piece of each dough portion and roll them into ropes of equal length.
9. Twist the red and white dough ropes together to create a candy cane effect.
10. Shape the twisted dough into a candy cane shape and place on the prepared baking sheet.
11. If desired, sprinkle crushed candy canes on top for extra flavor and decoration.
12. Bake for 10-15 minutes until the edges are lightly golden.
13. Allow cookies to cool on the baking sheet for a few minutes before transferring to a wire rack.
14. Let the cookies cool completely to prevent breakage.
15. Optionally, drizzle or dip the cookies in melted white chocolate for added sweetness.
16. Store cookies in an airtight container at room temperature for up to a week.
17. For advance preparation, refrigerate or freeze the dough for later use.
18. Enjoy these festive cookies at holiday parties or share them in a Christmas cookie exchange!