Heat your oven to 375 F.

In a large electric mixer bowl, place butter, sugar, and extracts. Cream together thoroughly. Beat in egg. Sift flour with baking powder and salt. Stir into butter mixture and combine well. Divide dough into two equal portions. Blend in red food coloring in one part.

Using 1 teaspoon of dough, roll out to a pencil-thin strip about 4-5 inches long. Rolling the strips on a pastry cloth with your hands makes a smooth strip. Place a white strip and a red strip side by side and twist them together. Place on ungreased cooking sheet. Turn one end to form a handle for the cane. Roll the strips one at a time, as rolling them all at one time could make the dough dry before you twist each one.

Bake for 8 to 10 minutes. Place cookies on a cooling rack. Combine crushed peppermint stick candy and sugar. Sprinkle mixture over warm cookies.