Line a large baking sheet with parchment paper and set aside.

In a large bowl using a stand mixer with the paddle attachment or an electric hand mixer, beat the softened cream cheese and softened butter on medium speed until completely smooth and creamy, about 2 minutes. Scrape down the sides of the bowl as needed.

Beat in the peppermint extract until combined.

With the mixer on low speed, gradually add the sifted powdered sugar, one cup at a time. The mixture will become a very thick, stiff dough. If the dough is still sticky, add up to 1/2 cup more powdered sugar until it is firm and easy to handle.

Divide the dough in half. Return one half to the mixing bowl (or place in a separate bowl) and leave the other half on a piece of parchment paper.

Add 3-4 drops of red gel food coloring to the dough in the bowl. Mix on low speed until the color is evenly distributed and vibrant. You now have one white dough and one red dough.

Take a small piece from the red dough and a similar-sized piece from the white dough. Gently roll them together in your hands to create a marbled ball, about 1 inch in diameter. Do not over-mix, or the colors will blend into pink.

Gently flatten the ball into a small patty or disc. You can also use the tines of a fork to press a pattern onto the top.

Place the granulated sugar in a shallow dish. Lightly press each side of the peppermint patty into the sugar to coat.

Place the coated mints on the prepared parchment-lined baking sheet. Repeat the shaping and coating process with the remaining dough.

Let the mints sit at room temperature, uncovered, for at least 2-3 hours, or overnight, to allow them to dry and firm up on the outside while remaining soft on the inside.