Line 4 cookie sheets with parchment paper; set aside.
in a medium bowl combine the flour and salt.
In a medium bowl beat the butter, cream cheese and sugar using an electric mixer until light and fluffy, about 3 minutes. Add the eggs, one at a time, beating well after each addition. Beat in the vanilla and food coloring. Gradually add the flour and beat until just blended.
Divide the dough in half. Shape each half into a 10-inch log (about 2 1/2 inches around) on a sheet of wax paper. Wrap up, twisting the ends, and refrigerate until firm, about 4 hours.
Preheat oven to 350°F. Working with 1 log of dough at a time, cut crosswise into 1/4-inch thick slices.
Arrange the slices on the prepared cookie sheets, about 2 inches apart. Bake until just beginning to brown, 11 to 13 minutes. Transfer to a wire rack and cool completely.
Cut the mini marshmallows in half crosswise with clean scissors. Melt the red candy melts in a medium bowl in the microwave until smooth, about 45 seconds. Dip the top third of a cookie in the melted candy to coat to make Santa's hat. Use a spatulato remove any excess candy. Return cookie to the lined pan. Add a row of marshmallows along the candy edge and one at the top of the cookie. Repeat with the remaining cookies. Refrigerate until set, about 5 minutes.
Place 1 cup of the white candy melts in a small bowl; set aside. Melt the remaining white candy melts in a medium bowl in the microwave until smooth. Holding a cookie in the center, dip the remaining cookie edge in candy to create a 1/2 to 1-inch band, which will be Santa's beard. Remove any excess. Repeat with the remaining cookies.
Melt the 1 cup white candy melts in the small bowl in the microwave, stopping and stirring every few seconds until smooth. Transfer to a freezer weight zip-top bag. Snip a small (1/8-inch) corner from the bag. Pipe 2 dots of candy melt on the cookie where the eyes belong and top with the chocolate candies. Repeat with the remaining cookies.
Snip a larger (1/4-inch) corner from the bag and pipe Santa's mustache. While candy melt is still wet add a chocolate candy for his nose. Refrigerate cookies until set, about 5 minutes.