Preheat your oven to 350 degrees Fahrenheit and line two large baking sheets with parchment paper or silicone baking mats.
In a large mixing bowl, beat the softened butter and cream cheese together until the mixture is smooth and fluffy. Gradually add the granulated sugar and continue beating until well combined.
Add the egg, alcohol-free vanilla, and peppermint extract to the butter mixture. Mix on medium speed until the egg is fully incorporated and the batter looks light and creamy. Be sure to scrape down the sides of the bowl so every bit is flavored with that lovely peppermint aroma.
In a separate small bowl, whisk together the flour, baking powder, and salt. Slowly add the dry ingredients to the wet mixture, mixing on low speed just until the flour disappears.
Gently fold in the white chocolate chips and about half of the crushed candy canes using a spatula. Reserving some of the candy cane bits for the top will give the cookies a professional, festive look once they are finished baking.
Use a cookie scoop to form rounded tablespoons of dough and place them two inches apart on the prepared baking sheets. Lightly press the remaining crushed candy canes onto the top of each dough ball. Bake for 10 to 12 minutes, or until the edges are just set but the centers still look slightly soft. Allow them to cool on the pan for five minutes before moving them to a wire rack.
