Preheat your oven to 350°F (175°C) and line a baking sheet with parchment paper.

Beat the softened unsalted butter until light and fluffy, about 2-3 minutes.

Gradually add the powdered sugar, mixing until well combined and fluffy.

Mix in the vanilla extract and peppermint extract (if using) until incorporated.

In a separate bowl, whisk together the all-purpose flour and salt until blended.

Slowly add the dry ingredients to the butter mixture, mixing on low speed until just combined.

Gently fold in the crushed candy canes, distributing them evenly.

Portion out the dough and roll into balls, placing them on the baking sheet.

Roll each dough ball in granulated sugar to coat lightly.

Flatten each cookie slightly using the bottom of a glass or fingertips.

Bake for 10-12 minutes until edges are lightly golden.

Let cool on the baking sheet for 5 minutes before transferring to a wire rack. Sprinkle with extra crushed candy canes if desired.