Preheat oven to 350°F. Make room in either refrigerator or freezer for your cookie sheet.

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-inch to 1-inch balls; roll in granulated sugar. Place 1-inch apart on cookie sheet. Bake for 10-12 minutes or until set. As soon as they come out of the oven, press a Candy Cane Kiss in the center of each cookie. They'll crack a little around the edges, so just use your fingers to kind of hold the cookie together while you set the kiss inside. Put cookie sheet (with cookies) immediately into the freezer (preferred) or refrigerator so that the Kisses will set quickly. As soon as you press them into the cookie, they will begin to soften... so if you can get them into the freezer then they will keep their Kiss shape and not turn into Kiss puddles.

 Store in an airtight tin for up to a week or freeze in Ziplocks for up to a month.