Preheat oven to 375°F and line a baking sheet with parchment paper.
In a large bowl, cream together the butter and powdered sugar until smooth.
Beat in the egg, vanilla, and peppermint extract.
Add flour and salt, mixing until the dough comes together.
Divide the dough in half. Tint one half with red food coloring and leave the other plain.
Scoop a small piece of each color, roll them into ropes, and twist together to form candy canes.
Place cookies on the baking sheet and curve the tops to make the hook shape. Sprinkle coarse sugar (optional).
Bake for 8–10 minutes or until edges are just set.
Cool completely on the baking sheet before moving to a wire rack.