Using shortening, grease a 10" bundt cake pan generously, then dust with flour. This will help the cake to come out cleanly, so use both shortening and flour.
In a large bowl, combine the cake mix, dry pudding mix, sour cream, eggs, oil and water. Use a hand mixer to beat well.
Remove 1 cup white batter and place it in a small bowl. Add a few drops of red food coloring and peppermint extract to the small bowl of batter. Mix well.
Pour half of white cake batter into the prepared pan. Carefully pour pinkish red batter over the white batter in the pan.
Top with the remaining white batter.
Gently tap the pan a few times on the countertop to release any air bubbles.
Bake for 43-50 minutes or until the top of the cake bounces back when you touch it.
Allow the cake to cool for 10 minutes, then turn it out onto a place to cool completely.
For the Glaze:
Combine the powdered sugar, milk and peppermint extract in a small bowl. Add enough milk so that the glaze will be a thick drizzle.
Drizzle the glaze over the top of the cake. Immediately sprinkle with crushed candy canes or peppermint crunch baking chips.
Store the cake in an airtight container. This cake freezes really well!
The calories shown are based on the cake being cut into 12 pieces, with 1 serving being 1 slice of cake. Since different brands of ingredients have different nutritional information, the calories shown are just an estimate.