Preheat oven to 350 degrees F.
In large mixing bowl, combine powdered sugar, butter, extract, and egg. Beat at medium speed until creamy.
In separate bowl, mix together flour, baking powder, and salt.
Add to wet mixture and combine thoroughly.
Add in Candy cane kiss crumbles. The mixture will be a bit crumbly, that is normal.
Shape dough into 1 inch balls and roll through granulated sugar.
Place dough balls on cookie sheet, about 1 inch apart and bake for 10-12 minutes, or until set.
Once cooked, quickly remove from oven and push Hershey kiss onto middle of cookie. Once cookies have their kisses on top, quickly move them to the freezer to cool. *This is important that you move them quickly as the Hershey kiss will begin to melt and you will want to keep it in its original form.
Once cookie is cooled, store in covered container.