Preheat oven to 350°F (175°C). Line a baking sheet with parchment or a silicone mat.
In a large bowl, beat softened butter and sugar with a mixer for 2–3 minutes until light and fluffy.
Mix in egg, vanilla, and cotton candy extract until smooth, scraping the bowl as needed. Whisk flour, baking powder, and salt in a separate bowl.
Gradually add dry mix to wet, blending on low until just combined. Dough should be soft, not sticky.
Gently fold in torn cotton candy pieces with a spatula. Work quickly to prevent dissolving.
Divide dough in half. Tint one half pink, the other blue. Swirl together for a marbled look, if desired.
Scoop 1-inch balls (about 2 tbsp each) onto baking sheet, 2 inches apart. Flatten slightly.
Bake for 9–11 minutes, until edges are set and centers look soft. Don’t overbake—they’ll finish on the sheet.
Cool on the sheet for 5 minutes, then transfer to a wire rack. Press a cotton candy piece on top while still warm, if desired.