Preheat oven to 325 degrees. Line a cookie sheet with parchment paper. Set aside.
In a small bowl, add the ⅓ cup powdered sugar and peppermint crunch sprinkles. Stir to combine. Set aside.
Cookies
In a large bowl, add butter, ¼ cup powdered sugar, peppermint crunch sprinkles, vanilla, and peppermint extract if you want a real punch of peppermint flavor. Beat with a hand mixer on medium until combined.
Gradually add in the flour and salt. Beat until combined. The dough will no longer be crumbly.
Using a tablespoon cookie scoop, scoop out and roll into a ball. If the dough is still kind of crumbly then squeeze the ball in your hand to stick it all together and then roll it into a ball shape.
Place on the prepared cookie sheet about an inch apart. These cookies don't spread.
Place in the preheated oven and bake for 12-15 minutes, just until the edges start to become golden brown.
Allow the cookies to cool completely.
Once the cookies are completely cooled, roll the cookies in the coating.
Store in an airtight container at room temperature