Preheat oven to 350°, and line 2 sheet trays with parchment paper.

In a medium-size bowl, measure together the flour, baking powder and salt. Set aside.

In a large bowl, measure together the 1 1/2 cups powdered sugar, butter, vanilla extract and egg. Using an electric mixer, beat on medium speed until smooth and creamy, 2 to 3 minutes.

Reduce the speed to low, and gradually add in the flour mixture until well blended. Note: The mixture will look crumbly at first, but the dough will come together.

Mix in 1/2 cup of the crushed candy canes.

Place the granulated sugar in a shallow bowl.

Use a small scoop to make 1-inch cookie balls. Roll the balls in your hands to smooth out the edges. Roll through the granulated sugar, and place 1-inch apart on prepared sheet trays.

Bake until set around the edges, about 15 minutes. Transfer to cooling racks, and allow to cool.

While the cookies are baking, make the glaze. In a medium-size bowl whisk together the 2 cups of powdered sugar and milk until smooth.

Spoon the glaze on top of each cookie, allowing it to drip down the sides, and top with a sprinkling of the remaining crushed candy canes.

Allow the glaze to set before serving.