Preheat your oven to 350°F (175°C) and line two baking sheets with parchment paper.

In a large mixing bowl, beat together the softened butter and cream cheese until smooth. Gradually add the granulated sugar and powdered sugar, mixing until well combined.

Add the eggs one at a time, mixing thoroughly after each addition. Then pour in the peppermint extract.

In a separate bowl, whisk together the flour and baking soda. Gradually add this dry mixture into the wet ingredients, mixing until just combined.

Gently fold in the chocolate chips with a spatula without breaking them.

Using a tablespoon, drop rounded portions of dough onto the prepared baking sheets, leaving about 2 inches of space. Bake for 10-12 minutes.

Let the cookies cool on the baking sheets for a few minutes, then transfer to wire racks to cool completely. Decorate with crushed candy canes if desired.