In a stand mixer, beat softened butter and granulated sugar on medium speed until creamy and fluffy, about 3-4 minutes. Then, add the egg and vanilla, mixing until fully incorporated.
In a separate bowl, whisk together the all-purpose flour, kosher salt, and baking soda. Gradually add this mixture to the butter blend on low speed until just combined; the dough should be soft.
Divide the dough into thirds, coloring one part with red gel food coloring and another with green. Leave the last portion uncolored. Wrap each in plastic wrap and refrigerate for 1 hour to firm up.
On a lightly floured surface or parchment paper, roll each colored dough into a 7-inch square. Stack them in the order of red, green, and uncolored, then roll tightly into a log. Chill again for 15 minutes.
Preheat the oven to 350°F (175°C). Carefully slice the log into ⅓-inch thick rounds. Roll the edges of each slice in red sanding sugar for a festive touch, then place them on lined baking sheets.
Bake for 8-10 minutes until the cookies are set but not browned. Allow to cool on the baking sheet for 1 minute before transferring them to wire racks to cool completely.
Optional: Add extra holiday sparkle by drizzling melted chocolate over the cooled cookies.
Notes
Chill dough thoroughly for best results. Experiment with different flavor extracts for unique variations.