Heat oven to 375. Mix butter, shortening, confectioners sugar, egg and flavorings
Blend in flour and salt
Divide dough in half, blend red food coloring into one half
Shape 1 tsp dough from each half into 4" rope. For smooth even ropes, roll them back and forth on lightly floured board.
Place ropes side by side. Press together lightly and twist. Place on ungreased cookie sheet. Curve top down to form handle of candy cane
Bake 9 minutes (or until light brown).
While cookies bake - mix crushed candy canes and granulated sugar.
Once cookies are done baking immediately sprinkle cookies with mixture.