In a large bowl, beat together cream cheese and butter until smooth.
Add peppermint extract and gradually mix in powdered sugar until a dough forms.
Divide dough into separate bowls and mix in different food coloring as desired.
Roll dough into small balls, then press into leaf molds or flatten and cut with cookie cutters.
Coat each piece lightly in granulated sugar and place on a parchment-lined tray.
Let dry at room temperature for at least 2-4 hours or until firm.
Store in an airtight container in the refrigerator or freezer until ready to serve.