Start by creaming the butter and powdered sugar together in a mixing bowl until light and fluffy, about 3–5 minutes. Gradually add in the flour, cornstarch, and peppermint extract, mixing until just combined.

Scoop small portions of the dough and roll them into 1-inch balls. Flatten each ball to about 1/2 inch thick. Arrange on a parchment-lined baking sheet.

Preheat your oven to 350°F (175°C). Bake the cookies for 15-20 minutes, until the edges are set and the centers remain soft.

Let the cookies cool on the baking sheet for about 5 minutes before transferring them to a wire rack. Once cooled, sprinkle with crushed candy canes or dust with powdered sugar.