Melt the vanilla candy melts in the microwave at 30 second intervals until smooth. Using a pastry brush, coat the inside of each paper cupcake liner. Refrigerate until set.
Meanwhile, in a small bowl, heat the vanilla baking chips, uncovered in the microwave for 1 minute at full power. Stir in 3 tablespoons heavy whipping cream. Heat for an additional 30 seconds, oruntil chips are melted and can be stirred smooth with the heavy cream. Stir in the peppermint extract and food color. Let the mixture cool to room temperature.
In a medium bowl, beat 1 cup of heavy cream with an electric mixer on high speed until stiff peaks form. Fold the melted peppermint mixture into the whipped cream. Spoon or pipe the mousse into the candy cups. Refrigerate until serving. Just before serving, sprinkle with crushed peppermint candy.