Using a stand mixer or hand mixer, beat the cream cheese on medium speed until smooth, about 1 minute.
Add the sugar and peppermint extract and beat until smooth and combined, about 30 seconds.
Add the Cool Whip and beat until combined, about 1 minute.
Fold in the Andes Peppermint Crunch Baking Chips, and transfer dip to a serving bowl and chill until ready to serve. Serve with chocolate graham crackers and chocolate covered pretzels. Dip can be stored in an airtight container for up to 1 week in the refrigerator.