In a mixing bowl, combine the softened cream cheese and peppermint extract.
Gradually add powdered sugar, mixing until smooth.
If desired, separate the mixture into different bowls for coloring.
Add food coloring to each bowl and mix until evenly colored.
Chill the mixture in the refrigerator for about 30 minutes.
Use a small scoop or your hands to form small balls from the chilled mixture.
Roll each ball in granulated sugar to coat.
Place the coated mints on a parchment-lined baking sheet.
Refrigerate the mints for at least 1 hour until set.
Serve chilled or at room temperature.