Cream butter and sugar.
Add baking powder, extract, and egg and combine.
Add flour and mix till combined.
Divide dough in half and add food coloring to one half.
Shape both pieces of dough into large balls, cover with saran wrap and refrigerate for an hour.
Remove dough balls from refrigerator and cut each ball into 12 pieces (24 pieces of dough total).
Roll one section each of pink and white dough sections into ropes about 18 inches long.
Loosely twist them together.
Tighten the coil by twisting gently at the ends.
Cut rope of dough into 3 sections (about 6 inches each).
Shape into candy canes and put on baking sheet lined with parchment.
If desired, sprinkle with decorative sugar.
Bake at 375 degrees for 8 minutes.
Let cool on sheet for a few minutes before removing to avoid breaking cookies.
Can be made ahead and frozen (carefully!)