Preheat your oven to 350°F (175°C). Line a baking sheet with parchment paper.
In a mixing bowl, use an electric mixer to beat the softened cream cheese, butter, and granulated sugar until smooth and creamy.
Add the egg and vanilla extract to the mixture, beating until well combined.
In a separate bowl, whisk together the flour, baking powder, salt, and peppermint extract.
Gradually add the dry mixture to the wet mixture, mixing until just combined. Be careful not to overmix.
Using a cookie scoop or tablespoon, drop rounded dough onto the prepared baking sheet, spacing them about 2 inches apart.
Gently press some crushed peppermint candies onto the tops of each cookie for decoration.
Bake in the preheated oven for 10-12 minutes, or until the edges are lightly golden.
Remove from the oven and allow the cookies to cool on the baking sheet for a few minutes before transferring them to a cooling rack.
If desired, dust the cooled cookies with powdered sugar before serving.