1 c. butter
1/2 c. sifted powdered sugar
2 c. all-purpose flour
1/2 c. finely chopped walnuts
1 tsp. vanilla extract
1/4 c. + 2 tbsp. sifted powdered sugar
2 tbsp. cream cheese, softened
1/2 c. sifted powdered sugar
1 tsp. milk
1/4 c. + 2 tbsp. crushed hard peppermint candy

Cream butter, gradually add 1/2 cup powdered sugar, beating at medium speed until light and fluffy. Add flour, beating until smooth; stir in nuts and vanilla. Cover and chill.

Combine peppermint candy and 1/4 cup plus 2 tablespoons sugar and mix well. Set aside.

Combine cream cheese and remaining ingredients; stir in 3 tablespoons candy mixture. Shape dough into 1 inch balls; press thumb in each cookie to make indentation. Spoon 1/4 teaspoon cream cheese mixture in each indentation.

Gently pinch edges together to seal. Place cookies about 1 inch apart on sheet. Bake 350 degrees 12-15 minutes. Transfer to rack and cool slightly. Roll cookies in remaining candy mixture and cool completely on racks. Makes 3 1/2 dozen.