In a bowl, combine granulated sugar, softened butter, and vanilla extract. Beat on medium speed until creamy for about 2 minutes.

Add the large egg and continue whisking until fully incorporated.

Sift together all-purpose flour and baking powder, then gradually mix it into the butter and sugar mixture on low speed until a smooth dough forms.

Divide the dough in half. Keep one half uncolored and add red liquid food coloring to the other half, mixing gently until the color is evenly distributed.

Shape each dough half into a rectangle and wrap in plastic wrap. Refrigerate for 30 minutes.

Trim edges of the refrigerated dough to create clean lines. Lay the red dough down, place the plain dough on top, and roll them tightly together.

Wrap the pinwheel roll in plastic wrap and refrigerate for another hour or overnight.

Preheat oven and line a baking sheet with parchment paper.

Slice the chilled dough into half-inch rounds and place them on the baking sheet, spacing them an inch apart.

Bake for 9 to 11 minutes or until the edges begin to brown slightly.