In a large mixing bowl beat together the butter, sugar, peppermint extract, vanilla extract, baking powder, salt and egg until well combined.

Add 2 ¾ cups of all purpose flour, and beat until just combined... Don't over mix or the cookies will be tougher.

Divide your cookie dough in half... Wrap 1 of the halves like a disk in plastic wrap... This is your white layer.

Add your liquid red food coloring to the leftover half of the dough in the mixing bowl, and mix it until your cookie dough turns a bright red, and is evenly colored. Shape your red dough into a disk, and wrap it up with plastic wrap.

Refrigerate both dough disks for at least 3 hours. Make sure the dough is well-chilled before rolling and shaping. This helps the dough maintain its shape during baking and prevents it from spreading.

Preheat your oven to 350 degrees F.

Line your baking sheets with parchment paper.

Remove both of your dough disks from the refrigerator and unwrap them.

For smaller candy cane cookies use 1 tablespoons of each of the dough disks and roll each color individually into 4 inch long log.

For large candy cane cookies: use 2 tablespoons of each dough dish and roll 8 inch long logs.

Make sure you roll the dough logs to a consistent thickness to ensure even baking.

With one red and one white roll laying next to each other, twist them to form a spiral effect. Place your twisted candy cane dough onto your parchment lined baking sheet, THEN bend the top downward to make each one into a candy cane shape. (Be sure to leave 1-2 inches of space between each candy cane, so they don't expand into each other as they bake.)

After shaping the candy canes, chill them for 10 minutes before baking. This helps them hold their shape better.

For a Sugar Sprinkle Finish: In a small bowl, whisk the egg white and water together. Then, use a pastry brush to brush the egg wash over the tops of your candy canes. And sprinkle granulated sugar over the tops of each one.

Bake in a PREHEATED oven bake large cookies for 8 minutes or small cookies for 6 minutes... Just until the edges turn slightly golden. Keep a close eye on the cookies in the oven. Overbaking makes dry cookies.

Allow the cookies to cool completely on the baking sheet before transferring them to a wire rack. This prevents them from breaking.