Add the 3 ounces cream cheese, 1 tablespoon butter, and 2 3/4 cup powdered sugar to a food processor. Pulse until everything is combined and a ball of dough forms.
Add in the 1/4 teaspoon peppermint extract and pulse until thoroughly incorporated, about one minute.
Add 2 to 3 drops gel food color onto the dough and knead it into the dough until the color is fully incorporated. If you choose to do more than one color, separate the dough and then add coloring to each ball of dough.
Roll teaspoon amounts of dough between your hands and place onto a sheet of wax paper.
Use a fork to place some decorative lines across the top.
Sprinkle with powdered sugar and allow the mints to set for a few hours to harden up.
Store in an airtight container in the refrigerator.
Notes
Storage: Place in an aright container and store it for up to 7 days in the fridge.