Candy Cane Cookies

1 cup butter -- softened

1 cup confectioners` sugar

1 egg

1/2 teaspoon peppermint extract

1/2 teaspoon vanilla extract

2 1/2 cups all-purpose flour

1/4 teaspoon salt

1 cup finely crushed candy canes

3 tablespoons granulated sugar

Preheat the oven to 375F. In a large bowl, with an electric beater on medium speed, cream the butter and confectioners` sugar until light and fluffy. Add the egg and the peppermint and vanilla extracts and beat until well blended. Gradually add the flour and salt; mix well. Cover the bowl tightly with plastic wrap and chill for 1 hour. Coat two baking sheets with nonstick cooking spray. In a shallow bowl, combine the crushed candy canes and the granulated sugar; mix well. Shape the chilled dough into 1-inch balls then roll each ball in the candy cane mixture; place on the baking sheets and bake for 10 to 12 minutes, or until browned. Immediately remove from the baking sheets and place on wire racks to cool.