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In a mixing bowl, beat the cream cheese and butter together until smooth and fluffy.
Mix in vanilla or peppermint extract.
Gradually add powdered sugar, mixing until a soft dough forms. The dough should be firm enough to handle but still soft.
Divide the dough into portions and mix in a few drops of food coloring for different colors (optional).
Roll small balls (about 1 teaspoon each) and flatten gently into round discs.
Press lightly with a fork to make the ridged pattern.
Place on parchment paper and let them sit at room temperature 4–6 hours or overnight until slightly firm.
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