Prepare a baking sheet by lining it with parchment paper and set aside for later use.
In a large mixing bowl, beat the softened cream cheese with an electric mixer until it reaches a fluffy and smooth consistency.
Carefully blend in the peppermint extract and vanilla extract, mixing until fully combined and fragrant.
Gradually incorporate the sifted powdered sugar, 1 cup at a time, mixing well until you have a thick, non-sticky dough that holds its shape.
If using, add a few drops of gel food coloring to the dough and knead by hand until the color is evenly distributed.
Roll the dough into small balls, about 1 teaspoon in size, and coat each ball lightly in granulated sugar.
Place the sugared mints on the prepared baking sheet, pressing each lightly to flatten them slightly.
Allow the mints to dry at room temperature for about 3 hours or refrigerate to speed up the process until they are firm to the touch.