Cream butter and sugar on high until light and fluffy; about 5-7 minutes.
Mix in extracts. Beat in egg and salt.
With the mixer on low, mix in 1 cup all-purpose flour and cornstarch at a time, alternating until gone and wiping down the sides of the bowl as you go.
Mix until fully combined.
Chill dough for 1 hour in the refrigerator.
Preheat oven to 325°F. Line baking sheets with parchment paper.
Using a 1½ tablespoon cookie scoop, scoop dough into balls. Place on cookie sheet about 1-inch apart.
Pat down dough into 2-inch by 2-inch flat cookies using the bottom of a flat glass or measuring cup dipping in powdered sugar.
Bake in oven for about 15 minutes.
Allow cookies to cool before frosting.
To make the frosting, cream marshmallow fluff cream and butter.
Beat in peppermint extract, and salt.
Slowly mix in powdered sugar until fully combined.
Add 1 drop red food coloring to bowl and mix until color is combined and no more white frosting remains.
Thinly frosts each cookie using a butter knife. Sprinkle with crushed peppermint candy canes.