Preheat oven to 325°. In large bowl, beat butter and 2/3 cup of powdered sugar with mixer on medium speed until creamy. Mix in 1 teaspoon of peppermint extract and the salt.

Gradually add in flour and beat on low speed after each addition just until combined.  Do not overmix.

Divide dough in half and add red food color to one half until desired color is reached.  Divide each half into four pieces so you have eight pieces of dough. Roll each piece into a rope 18 inches long. Twist one red rope with a white rope to form a cany cane spiral.  Cut each rope into 1" pieces.  Curve ends to form a crescent shape and place on ungreased cookie sheets, 2" apart. Repeat with 6 remaining pieces of dough.

Bake 8-10 minutes or until a light golden brown on bottom.  Cool on racks.

While cookies are baking and cooling, place candy canes into a ziploc bag.  smash into bits with a mallet and set aside. In small bowl, mix remaining 1 cup of powdered sugar, the milk and remaining 1/4 teaspoon peppermint extract, stirring until smooth.  Place icing in a ziploc bag with small corner cut off.  Drizzle icing over cooled cookies.  Sprinkle with crushed candies.