Additional crushed peppermint candy cane for topping
Preheat oven to 350° F. Line a cookie sheet with a baking mat or parchment paper. This helps prevent the bottom from burning.
Allow butter to come to room temperature or microwave cold butter for 10-15 seconds to soften.
Sift confectionary sugar into mixing bowl and add softened butter and vanilla extract. Beat on medium speed until well combined.
Sift flour into a separate bowl and combine with instant white chocolate pudding mix. Slowly add the flour into the butter and sugar mixture and beat on medium speed until dough begins to form. Refrigerate while preparing the filling.
For the filling
Sift confectionary sugar and then added crushed peppermint candy canes.
In a separate bowl, combine cream cheese with milk and stir vigorously with a whisk until well blended.
Combine blended confectionary sugar with cream cheese mixture and stir to combine. Mixture will become thicker. Add red food coloring if desired. I skipped this step.
Remove dough from fridge and shape the chilled dough into tablespoon size balls and press your thumb into the middle of the cookie. Spoon about one teaspoon of the peppermint cream cheese onto the top of the cookies.
Bake at 350° F for 10-12 minutes. Remove cookies from oven and allow to cool for 5 minutes before transferring to a wire rack.
Sprinkle with additional crushed peppermint candy cane and sprinkle with powdered sugar.