Place the softened cream cheese into a large mixing bowl and beat with an electric mixer on medium speed until it is completely smooth and free of lumps.
Add the peppermint extract and your chosen food coloring to the cream cheese, mixing until the color is uniform throughout.
Gradually add the sifted powdered sugar one cup at a time, mixing on low speed until a stiff, dough-like consistency forms. If the mixture is too sticky to handle, add an additional tablespoon of powdered sugar.
Lightly coat your candy molds with granulated sugar to prevent sticking, or dust your hands with sugar if rolling by hand.
Press small portions of the dough firmly into the molds, ensuring you fill every crevice for a sharp, clear impression.
Carefully pop the molded pieces out of the tray and place them onto a parchment-lined baking sheet.
Allow the candies to air dry at room temperature for at least 2 to 4 hours, or until they develop a firm, slightly crusty exterior.