In a stand mixer, add softened unsalted butter and granulated sugar. Beat on medium speed until light and fluffy, about 3-4 minutes. Blend in peppermint and vanilla extracts, baking powder, and salt. Add an egg and mix until incorporated. Gradually add flour until a smooth dough forms.

Divide the dough into two equal portions. Leave one plain and add red food coloring to the other half. Knead the red dough until color is evenly distributed. Wrap both portions in plastic wrap and chill for 15-20 minutes.

Preheat oven to 350°F (175°C). Roll small pieces of each colored dough into 4-5 inch ropes. Twist a red and a white rope together, curve to form candy cane shapes, and place on a baking sheet lined with parchment paper.

Brush the tops of cookies lightly with egg white and sprinkle with sparkling sugar for texture. Bake for 9-11 minutes until edges are lightly golden and centers are soft.

Remove from oven and let cool on the baking sheet for 5 minutes before transferring to wire racks to cool completely.