Cream together the butter and sugar in a stand mixer fitted with the paddle attachment. Add the vanilla and mix until well-combined.

Add in the flour, a little bit at a time, and continue mixing until everything is combined. With the speed on low, add in the candy cane bits and mix until they're just distributed throughout.

Roll out the dough to about 1/8" thick, cut out your shapes and place them on a baking sheet lined with a silpat or parchment paper. Bake at 325° for 12 minutes, rotating your baking sheet halfway through.

Let the cookies cool on the baking sheet for five minutes, then transfer to a wire cooling rack to cool completely.