In a large pot, melt the unsalted butter and mini marshmallows over low heat. Stir until the mixture is completely smooth. Once fully melted, take it off the heat and stir in the peppermint extract.

Divide the melted marshmallow mixture evenly between two bowls. Add a few drops of red gel food coloring to one bowl and leave the other bowl plain. Stir until the color is evenly distributed.

Divide the rice cereal into two equal portions. Gently fold the plain marshmallow mixture into one half of the cereal and the red mixture into the other half. Work quickly to prevent setting.

Take a small handful of the white cereal mixture and a small handful of the red mixture. Roll them together to form a rope, then twist them gently to create the candy-cane spiral shape. Bend the top slightly to form a hook.

Roll each candy cane in crushed candy canes while still tacky for added crunch and festive appeal.

Allow the finished candy canes to cool completely at room temperature for about 20 minutes before serving or packaging.