In the bowl of a stand mixer fitted with the paddle attachment, combine the softened butter, sugar, vanilla, and almond extract. Beat until smooth, about 2-3 minutes.
Add the powdered sugar, beaten egg, baking powder, and salt. Mix for 1 minute.
Add the flour and mix just until combined. Divide the dough into two equal parts. Wrap one half tightly in plastic wrap.
Add red food coloring to desired preference to the remaining half still in the stand mixer bowl. Mix until the food coloring has evenly distributed. Wrap the dough tightly in plastic wrap, then place both cookie dough balls in the fridge to chill 30 minutes to 1 hour.
Preheat oven to 350F. Line 1-2 baking pans with parchment paper.
The dough should be chilled but still malleable to shape. If not, let it sit on the counter for 5-10 minutes.
Pinch of 1" pieces from both the regular and red cookie dough. Roll each into a 5-6" rope, then place side-by-side. Twist the two together, then shape into a candy cane shape. Place on the prepared baking pans. Repeat with remaining dough.
Top the cookies with extra granulated cane sugar. Bake for 8-10 minutes, until barely golden. Let cool 5 minutes on the pan, then transfer to a baking wire rack to cool completely.