Preheat oven to 350 and line a baking sheet with parchment paper.
Combine butter, powdered sugar, peppermint extract, egg yolk and color paste in a mixing bowl. Beat on medium speed for about a minute. Stir in flour, baking powder and salt.
Roll dough into teaspoon size balls and place onto a baking sheet.
Bake for 10 minutes or until set and lightly browned on the bottom. Remove from oven and let set for 2 minutes. Place one Junior Mint candy on the cookie and gently press into the center.