In a stand mixer, combine the butter and granulated sugar. Beat until fluffy (2-3 minutes). Add peppermint and vanilla extracts, baking powder, salt, and egg, then mix in flour until just combined.

Divide the dough into two portions. Leave one plain and add red food coloring to the other until fully incorporated. Wrap both in plastic wrap and chill for 15-20 minutes.

Preheat oven to 350°F. Roll both dough portions into ropes, twisting them together to form a candy cane shape. Place on a lined baking sheet.

Brush each cookie lightly with egg white, sprinkle with sparkling sugar, and bake for 9-11 minutes until edges are golden.

Let cool on the baking sheet for 5 minutes, then transfer to wire racks to cool completely. Store in an airtight container for up to a week.