1 cup sugar
1 cup butter or margarine, softened
1/2 cup milk
1 teaspoon vanilla
1 teaspoon peppermint extract
3 1/2 cups all-purpose flour
1 teaspoon baking powder
1/4 teaspoon salt
1/2 teaspoon red food colour
2 tablespoons finely crushed peppermint candies
2 tablespoons sugar
1. Stir together 1 cup sugar, the butter, milk, vanilla, peppermint extract and egg in large bowl. Stir in flour, baking powder and salt. Divide dough in half. Stir food color into 1 half. Cover and refrigerate at least 4 hours.
2. Heat oven to 375ºF.
3. Stir together peppermint candy and 2 tablespoon sugar; set aside.
4. For each candy cane, shape 1 rounded teaspoon dough from each half into 4-inch rope by rolling back and forth on floured surface. Place 1 red and white rope side by side; press together lightly and twist. Place on ungreased cookie sheet; curve top of cookie down to form handle of cane.
Bake 9 to 12 minutes or until set and very light brown. Immediately sprinkle candy mixture over cookies. Remove from cookie sheet to wire rack. Cool completely, about 30 minutes.