Prep your tools: Heat the oven to 350°F (175°C).
Line two baking sheets with parchment paper. Unwrap the chocolate kisses now and set them aside in a cool spot.
Cream the fats and sugars: In a large bowl, beat the butter, peanut butter, granulated sugar, and brown sugar until light and fluffy, about 2–3 minutes. This builds air for a soft cookie.
Add the wet ingredients: Beat in the egg and vanilla until smooth.
If the dough looks very stiff, add 1–2 teaspoons of milk to loosen it slightly.
Mix the dry ingredients: In a separate bowl, whisk together the flour, baking soda, baking powder, and salt.
Combine: Add the dry mixture to the wet ingredients and mix on low just until no dry streaks remain. Do not overmix.
Chill (briefly): Place the bowl in the fridge for 15–20 minutes. This helps the dough firm up and limits spreading.
Shape and coat: Scoop tablespoon-sized portions and roll into 1-inch balls.
Roll each ball in granulated sugar to coat completely.
Bake: Arrange the dough balls on the prepared sheets, spacing about 2 inches apart. Bake for 8–10 minutes, until the edges are set and the tops look puffed and slightly cracked.
Add the chocolate: Remove the cookies from the oven and immediately press a chocolate kiss into the center of each one. The cookie will crack a bit around the edges—that’s perfect.
Cool: Let the cookies sit on the sheet for 5 minutes to set, then transfer to a wire rack.
Allow the chocolate to firm up completely before storing.