Place peppermint candies or candy canes into a freezer bag. Crush them with a rolling pin until finely broken, slightly coarser than powder. Set aside.

In a medium mixing bowl, whisk together the flour, baking powder, and salt until well blended.

In a large mixing bowl, cream the softened butter and 1 ½ cups granulated sugar with an electric mixer until light and fluffy. Add the eggs one at a time, followed by the vanilla and peppermint extracts. Mix until smooth.

Gradually add the flour mixture into the butter mixture, blending until a smooth dough forms. Cover and refrigerate the dough for 60 minutes.

Preheat the oven to 350°F (175°C). Line baking sheets with parchment paper. Using a small scoop or two spoons, portion dough into balls approximately 1 tablespoon each. Roll each ball in the reserved 1 cup of granulated sugar. Place 2 inches apart on the prepared sheets and lightly flatten. Top with crushed peppermint.

Bake for 10–12 minutes, or until the edges are set but not browned. Allow cookies to cool on the baking sheets for 5 minutes before transferring to wire racks.

Melt the chocolate chips in the microwave in 30-second intervals, stirring between each, until smooth. Once cookies have fully cooled, drizzle chocolate over the tops using a fork or spoon. Allow chocolate to set before serving.