Ingredients:

1 cup butter or margarine, softened
1/2 cup confectioners’ sugar
1 teaspoon vanilla extract
2 1/2 cups all-purpose flour
2 tablespoons cream cheese, softened
1 tablespoon milk
1/2 cup confectioners’ sugar
2 tablespoons finely crushed peppermint candy or candy canes
1 drop red food coloring
1/4 cup confectioners’ sugar
6 tablespoons finely crushed peppermint candy or candy canes

Directions:

In a mixing bowl, cream butter and sugar; add vanilla. Stir in flour; knead until well mixed. Reserve 1/2 cup of dough; shape remaining dough into 1-inch balls.

For filling, combine cream cheese and milk in a small bowl. Stir in sugar, candy and food coloring; mix well. Make a deep well in the center of each ball; fill with 1/4 teaspoon filling. Use reserved dough to cover filling. Reshape if necessary into smooth balls. Place on ungreased baking sheets. Bake at 350 degrees F. for 12-14 minutes.

Combine topping ingredients; roll cookies in mixture while still warm. Cool on wire racks.