01 - In a medium bowl, beat the softened butter and cream cheese together until the mixture is smooth and creamy.
02 - Add the peppermint extract and mix thoroughly to combine flavors.
03 - Gradually add powdered sugar to the mixture, stirring continuously until a stiff dough forms. If the dough becomes too stiff, add milk a few drops at a time to reach workable consistency.
04 - If desired, divide the dough into portions and knead in food coloring evenly.
05 - Dust hands with powdered sugar, pinch off small portions, and roll into 2.5 cm (1 inch) balls. Flatten each ball gently with a fork or fingers.
06 - Place formed candies on a parchment-lined tray and decorate with sprinkles or colored sugar if preferred.
07 - Allow candies to dry at room temperature for 2 to 3 hours until firm to the touch.
08 - Keep candies in an airtight container for up to two weeks to maintain freshness.