Place the butter, sugar, peppermint extract, vanilla extract, baking powder, and salt into the bowl of a stand mixer. Beat together until a paste forms and clings to the sides of the bowl.

Scrape down the sides of the bowl, then beat in the egg until fully absorbed.

Gradually add in the all-purpose flour and beat on low until just combined with no dry streaks visible.

Divide the dough into two equal parts.

Add the liquid red food coloring to one half and mix on low until evenly distributed.

Shape each portion into a disk, wrap tightly in plastic wrap, and refrigerate for at least 3 hours or overnight.

Preheat the oven to 350ºF (175ºC). Line a baking sheet with parchment paper or a silicone baking mat.

Pinch off a 1-inch round piece of the white dough and roll it into a 5-inch long rope, then repeat with a red dough piece.

Twist the two ropes together gently and curve the top end to form a candy cane shape.

Transfer to the baking sheet, spacing cookies about 2 inches apart.

Beat the egg white with 1 tablespoon of water until foamy. Brush the tops of each cookie with the egg white wash and sprinkle with sparkling sugar.

Bake for 8 to 10 minutes until edges are just barely brown.

Allow cookies to cool on the baking sheet for 10 minutes before transferring to a wire rack.

Let cookie sheets cool completely before baking subsequent batches.