In a blender, combine the vanilla ice cream, milk, peppermint extract, and green food coloring. Blend until smooth and well combined, achieving a vibrant green color.
Taste the milkshake and adjust the peppermint flavor if needed by adding a little more extract, blending again to mix.
Pour the milkshake into tall glasses, filling them about 3/4 full.
Top each milkshake generously with whipped cream to create a fluffy cloud on top.
Sprinkle crushed candy canes and red and green sprinkles over the whipped cream for a festive touch.
Carefully place a maraschino cherry on top of the whipped cream for the perfect finishing touch.
Serve immediately with a festive straw and enjoy your Grinch-inspired treat!