Preheat the oven to 350ºF.

Place the candy canes in a food processor and pulse until pulverized. Place the candy cane dust in a small bowl and set aside.

In a medium bowl, whisk together the flour, baking soda, baking powder, and salt.

Beat the butter until smooth. Add the powdered sugar and beat on slow until combined and creamy. Beat in the egg and peppermint extract.

Add the dry ingredients to the butter mixture and mix. The dough should be neither crumbly or sticky. Add more flour if the dough is too sticky, or a splash of milk if it is too dry.

Line a baking sheet with parchment paper or a silpat liner. Shape the dough into 1-inch balls and roll them in the crushed candy canes.  Place at least 2 inches apart on the baking sheet.

Bake for about 7 minutes, or until the edges are barely browned. Remove the cookies from the oven and let them sit on the baking sheet for 3 minutes. Press a peppermint kiss into each cookie and transfer to a cooling rack or sheet of wax paper to cool completely.