Sift 4 cups of powdered sugar into a large mixing bowl. Pour in 1 can of sweetened condensed milk and 1 tsp of peppermint extract. Mix until a sticky dough forms.

Divide the dough into three portions. Keep one plain, add red gel to the second and green gel to the third. Knead until colors are distributed.

Dust your work surface with powdered sugar. Roll colored dough into thin ropes. Twist two colors together for a candy cane effect.

Cut the twisted ropes into 2-inch segments and shape into rounds or discs. Roll in granulated sugar to coat.

Place the candies on a parchment-lined baking sheet. Let them dry at room temperature for 8 hours or overnight.