In a large bowl, combine the room temperature cream cheese, whipped topping, marshmallow fluff, vanilla extract, and peppermint extract. Blend everything together on low speed with an electric mixer for 1-2 minutes until smooth and creamy.

Place the crushed peppermint pieces into a ziplock bag and seal it. Use a meat mallet or the bottom of a heavy can to crush the candy until you have smaller pieces suitable for mixing into the dip. I like to crush them just enough so there’s a mix of tiny bits and a few larger chunks for better texture.

Reserve a small amount of the crushed peppermint for garnish. Add the remaining crushed peppermint from Step 2 and the red food coloring to the dip base from Step 1. Gently fold everything together until evenly distributed. Transfer the dip to a serving bowl.

Chill the dip if desired, or serve immediately. Before serving, sprinkle the reserved peppermint pieces on top as a garnish. This dip pairs wonderfully with cookies, graham crackers, or even Oreos—I find that chocolate covered pretzels also make a fantastic crunchy accompaniment!