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Preheat oven to 350° and line a large baking sheet with parchment.
In a food processor, pulse flour, powdered sugar, cornstarch, baking powder, and salt a few times to combine. Add butter and peppermint extract and pulse until a cohesive ball of dough forms.
Scoop 28 rounded teaspoons (10 grams) dough. Arrange 1" apart on prepared sheets. Press down to slightly flatten.
Bake cookies until just browned on the bottoms, 8 to 12 minutes. Let cool completely.
In a small bowl, whisk powdered sugar and milk until thick and spreadable. Using a toothpick, add a very small amount of food coloring to icing and whisk until pale pink.
Spoon about 1 teaspoon icing over each cookie and spread, leaving a slight border. Sprinkle with candies. Let stand until icing sets, about 30 minutes.