Heat oven to 350°F.

In large bowl, beat butter, powdered sugar and vanilla with electric mixer on medium speed, or mix with spoon until well blended.

Stir in flour.

Divide dough in half.

Stir peppermint extract and food color into one half of dough.

Divide red dough and plain dough in half.

On generously floured surface, shape each piece of dough into 12-inch-long rope.

Place 2 ropes, 1 red and 1 plain, side-by-side; twist ropes together.

Repeat with remaining dough.

Cut twisted ropes into ½-inch pieces; shape each into ball.

On ungreased cookie sheets, place balls 1 inch apart.

In small bowl, place granulated sugar.

Dip bottom of glass in granulated sugar, and flatten each ball to about ¼ inch thick.

Bake 7 to 9 minutes or until set.

Remove from cookie sheets to cooling racks.