Preheat your oven to 350°F (175°C).
In a medium bowl, whisk together flour, baking powder, and salt.
In a large bowl, beat the softened butter, granulated sugar, and brown sugar until creamy.
Add the egg, vanilla extract, and peppermint extract to the butter mixture; mix until combined.
Gradually add in the flour mixture, mixing until just combined.
Divide the dough in half. In one half, mix in the crushed candy canes and red food coloring, if using.
On a floured surface, take small portions of both the plain and the candy cane dough and roll them into logs.
Twist or swirl the two logs together and shape them into a circular cookie shape.
Place the cookies on a lined baking sheet, spacing them about 2 inches apart.
Bake in the preheated oven for 10-12 minutes, until edges are lightly golden.
Allow cookies to cool on the baking sheet for 5 minutes before transferring them to a wire rack.
Once completely cooled, drizzle with melted chocolate if desired, then sprinkle with more crushed candy canes.