In a large mixing bowl, combine the cream cheese, softened butter, vanilla extract, and peppermint extract. Gradually add the powdered sugar to the bowl, mixing continuously to avoid a sugar storm. Keep adding until the sugar is fully incorporated.
Test the mixture by forming a small ball with your hands. It should not be sticky. If it’s sticky, add more powdered sugar, starting with ¼ cup. Mix well and test again, adding more sugar if necessary.
Line a cookie sheet with parchment paper. Using a teaspoon, scoop out portions of the mixture. Roll each portion between your palms to form a ball, then place it on the cookie sheet. Press down each mint ball with a fork to flatten slightly and create a pattern.