In mixing bowl, sift together flour, baking powder and salt. Set aside.
In large mixing bowl, combine the powdered sugar, butter, extracts, and egg. Beat at medium speed scraping sides of bowl until creamy. Add the flour mixture mixing until blended. The mixture will be a bit crumbly. Stir in chopped kisses.
Shape the dough into 3/4 inch balls and roll them in the sugar. Bake for 10-12 minutes.
As soon as out of the oven press a candy cane kiss in the center. Put immediately in the fridge or freezer so that they keep their kiss shape.
I found that you can do this two ways. 1- You can just press the kiss into the cookie and it will melt in the center. It will still look really cute with the stripes but lose the kiss shape. I LOVED the way they tasted when I bit into the soft cookie with melted chocolate. or 2- You can either put them in the fridge or freezer to keep the kiss shape. or I let my cookies cool for about 5 minutes and pressed the kiss down into it and put it in the fridge. it hardly melted at all. Both ways are awesome, I always warmed mine up anyway before eating so the chocolate was soft and gooey.... YUM these are so good!
Store in an airtight container at room temperature up to a week. If they last that long!