Peppermint Candy Cane Kiss Cookies

1 1/2 cups powdered sugar
1 1/4 cups butter, softened
1 teaspoon Peppermint extract
1 teaspoon Vanilla extract
1 large egg
3 cups all purpose flour
1 teaspoon baking powder
1/2 teaspoon salt
1/2 cup candy cane flavored Hershey's Kisses, finely chopped
 about 50 unwrapped candy cane flavored Hershey's Kisses

In large mixer bowl, combine powdered sugar butter, extracts and egg.  Beat at medium speed, scraping bowl often until creamy (2-3 minutes.)  In a separate bowl, whisk together flour, baking powder and salt.  Add to wet mixture and beat, scraping bowl often until well blended (1-2 minutes.) The mixture will be a bit crumbly.  Stir in chopped Kisses.

Shape dough into 3/4" - 1" balls; roll in granulated sugar, (I used red colored sugar crystals.)  Place 1-inch apart on cookie sheet.  Bake  at 350 degrees for 10-12 minutes or until set.  As soon as they come out of the oven, place kiss in center of cookie.  Put cookie sheet in freezer (preferred) or fridge so that kisses will set quickly, otherwise they will turn into Kiss puddles.

Store in air tight container for up to a week or freeze in Ziploc for up to a month.