Preheat the oven to 350 degrees. Combine the powdered sugar, butter, the egg, and extracts in a large mixing bowl. Beat the mixture until creamy and smooth, scraping the bowl often, about 3-4 minutes. In another bowl combine the flour, baking powder, salt, and whisk together. Combine the creamy mixture with the flour mixture and mix thoroughly. It will be a bit crumbly. Now stir in the chopped Hershey® candy cane kisses. The next step is to make one-inch in diameter cookie balls and roll them in sugar to coat them. Place the balls on a cookie sheet with parchment paper or a greased cookie sheet. Bake for 10-12 minutes or until set. After baking, remove them from the oven. Let the cookies cool down about 2-3 minutes. They need to cool down BEFORE you place the Hershey® candy cane kiss in the center of them or they will melt. The cookies may split ever so slightly so use your fingers to press them together when you put the kiss in each one. Place the cookies in the freezer on the cookie sheet immediately to set the cookies so the kiss will not soften. After the cookies are set, store them in the refrigerator. They will keep about one week in the refrigerator. They freeze well for about 2-3 weeks.