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Preheat oven to 375 degrees. In a large bowl beat together the butter and powdered sugar. Slowly and the flour and mix well. Add the peppermint extract. Divide the dough in half and place in two separate bowls. Tint one bowl green and one bowl red with the food coloring.
Form small balls of dough with your hands, using about a 1/2 teaspoon of dough for each ball. Form circles by placing 6 balls on an ungreased cookie sheet, alternating with red and green balls. Press together securely. If the children are helping make the wreaths, make sure to check each cookie and press them firmly or else you will have a bunch of tiny red and green balls. Take the pulverized peppermints (should be a powder) and dust the cookies lightly. Bake for 6-8 minutes or until firm. Let cool for 10 minutes on the pans and then remove to wire racks to cool completely. Store in an airtight container, or freeze.
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