Preheat the oven to 350°F. Line a large baking sheet with parchment paper.
In the bowl of a stand mixer, beat the sugar and butter on medium speed for 2 to 3 minutes, or until combined. Add the water, apple cider vinegar and vanilla extract and beat for 1 more minute.
In a medium bowl, whisk together the flour, baking powder, baking soda, and salt.
With the mixer on low speed, add the dry ingredients to the wet ingredients and whisk until just combined.
Divide the dough into 1 ½ tablespoon-sized balls using a spring-loaded scoop. Bake for 12-14 minutes or until cookies are slightly golden brown at the edges. Cool on the baking sheet for 5 minutes, then transfer to wire racks to cool completely.
Dip the cookies in melted white chocolate and sprinkle with peppermint, if desired.