In a large bowl, mix cream cheese and peppermint flavor until well blended. Gradually add powdered sugar and knead by hand on a board or counter until no longer sticky and shapes easily into small balls. Divide into four equal portions.
To each portion, knead in one drop food color of your choice or enough to make desired color. Shape into 3/4 -inch balls, roll in sugar. Press balls into flexible candy molds and turn out immediately, or flatten balls with tines of a fork. Or place one portion of mixture between two sheets of waxed paper and roll to 1/4 -inch thickness; cut out shapes with tiny cookie or aspic cutters and dip all sides in sugar. Let dry at room temperature. Store loosely covered in the refrigerator.