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Step 1
With an electric mixer, cream together the cream cheese, butter and peppermint extract.
Step 2
Gradually add the powdered sugar. Mix on low speed just until combined.
Step 3
Dust a non-stick surface with additional powdered sugar.
Step 4
Divide evenly in 4 even pieces. Add a few drops of desired food coloring into each of the peppermint mixtures.
Step 5
Roll each color into a 20-inch rope. Cut into even 20 even pieces. Dust with additional powered sugar between batches to prevent sticking. Roll each cut piece into a ball then roll into the granulated (if desired). Press the center with a fork dipped in powdered sugar (like you would a peanut butter cookie).
Step 6
Leave on a wax paper lined baking sheet for 2 hours or until dry. Store chilled with wax paper between layers.