In a mixing bowl, combine cream cheese, powdered sugar, and peppermint extract. Use a hand mixer on medium speed until smooth, about 3 minutes.

If desired, add red food coloring to the mixture and swirl gently to create a marbled effect.

Roll the creamy mixture into small balls, about 1 inch in diameter, and arrange on a parchment-lined baking sheet.

Cover the baking sheet with plastic wrap and refrigerate for 30 minutes.

Melt the white chocolate chips in a microwave-safe bowl in 30-second intervals, stirring until smooth.

Dip each chilled peppermint ball into the melted chocolate, ensuring every surface is coated.

Sprinkle crushed peppermint candies over each coated ball while the chocolate is still wet.

Refrigerate the coated balls for an additional 15 to 20 minutes until the chocolate sets.