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

Cream the softened butter in a mixing bowl using an electric mixer until light and fluffy, about 2–3 minutes.

Gradually add the powdered sugar while mixing on low speed until well combined and fluffy, about 2 minutes.

Add the vanilla extract and optional peppermint extract to the butter-sugar mixture and mix until combined.

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

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

Gently fold in the crushed candy canes into the dough.

Portion out the dough and roll each piece into a ball.

Roll each dough ball in granulated sugar and place them on the lined baking sheet, spaced about 2 inches apart.

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

Bake for 10–12 minutes, until the edges are lightly golden but the centers are still soft.

Allow the cookies to cool on the baking sheet for 5 minutes before transferring to a wire rack.

Sprinkle additional crushed candy canes on top for decoration.