Preheat oven to 350°F (175°C) and line two baking sheets with parchment paper.
In a large mixing bowl, cream together the softened butter and granulated sugar until light and fluffy, approximately 3 minutes.
Add the egg, vanilla extract, and peppermint extract; beat until fully incorporated.
In a separate medium bowl, whisk together the flour, baking powder, and salt.
Gradually add the dry ingredients to the wet ingredients, mixing on low speed until just combined.
Scoop rounded tablespoons of dough and roll into 1-inch balls, placing them on the prepared baking sheets spaced 2 inches apart.
Bake for 8 to 10 minutes or until the edges are set but not browned.
Remove from oven and let the cookies cool on the baking sheet for 5 minutes before transferring to a wire rack to cool completely.
Melt the white chocolate in a microwave-safe bowl in 30-second increments until smooth.
Drizzle the melted white chocolate over the cooled cookies and immediately sprinkle with crushed candy canes before the chocolate sets.