Preheat oven to 350F. Prepare a cookie sheet with parchment paper.
In large bowl, cream together 1/4 cup sugar, brown sugar, peanut butter, and butter. Add in egg.
Beat in remaining ingredients until dough comes together.
Form dough into 1-inch balls. Drop balls one at a time into remaining 1/2 cup sugar and completely coat.
Place on prepared cookie sheet two inches apart. Use the heal of your hand to flatten the dough.
Bake at 350F for 8-10 minutes.
While still slightly warm, gently press an unwrapped Hershey's kiss into the center of each cookie. Allow to cool completely.