In a medium bowl, whisk together flour, baking powder, and salt.
In a bowl of the stand mixer or large bowl, beat together sugar and butter until light and fluffy. Beat in milk and extracts until well combined.
Add egg and beat well. Gradually add flour mixture until well blended.
Divide dough in half. Place half of the dough in a separate bowl and color with food coloring.
Cover both with plastic wrap and place refrigerator to chill at least 4 hours.
Remove from refrigerator and preheat oven to 375° F (180° C). Line baking sheets with parchment paper or a silicone mat.
For each candy cane, scoop 1 rounded tablespoon of each color of dough and roll each into a 6-inch rope.
Place white rope next to red rope, pressing together slightly and lightly twist by holding each end and turning. Place on a prepared cookie sheet and curve the top to form cane.
Bake 8-10 minutes or until cookies are set and light brown.