Combine cream cheese and butter in the bowl of a stand mixer (or in a large bowl and use an electric mixer) and beat until creamy and well-combined.
With mixer on low-speed, gradually add 2 cups (250g) of sugar, stirring until completely incorporated.
Add peppermint and vanilla extract and stir well.
With mixer on low-speed, gradually add remaining sugar. Stir until sugar is completely combined and pause occasionally to scrape sides and bottom of the bowl. Dough should be very stiff and not sticky (if it’s still sticky, add more powdered sugar until it has a play-dough-like consistency).
If using food coloring: If using just one color you can use your electric mixer to beat the color into the dough. If you'd like to do several colors, divide the dough into as many bowls as you would like colors and color each individually, stirring well until color is well-incorporated.
Roll dough between your palms into teaspoon-sized portion until smooth. Transfer to wax-paper lined baking sheet. Dip the tines of a fork in powdered sugar and use that to gently but firmly press down on each mint.
Allow mints to dry at room temperature for several hours (they should be dried through and if you squeeze them firmly they shouldn't squish or give) then transfer to an airtight container and store in the refrigerator until ready to serve. To help minimize any sticking, store mints in single layers with a sheet of wax paper between them.
¹Be sure to use brick-style cream cheese (as shown in photo in post) and not the spreadable kind that comes in a tub.
To Make Into Molds
If you’d like you can make these mints into just about any shape you’d like using molds. To do so, roll a bit of the dough into a ball, roll that thoroughly through granulated (not powdered) sugar, and press it firmly into your mold. Invert the mold and pop out your adorably shaped cream cheese mint!