Candy Cane Crisps

1 cup butter or margarine, softened
1 1/4 cups powdered sugar, divided
1 1/2 teaspoons vanilla
1 1/3 cups all-purpose flour
1 cup rolled oats
1/2 teaspoon salt
3/4 cup coarsely crushed peppermint candy canes, divided

Preheat oven to 325 F. In large bowl with an electric mixer, beat butter and 1 cup powdered sugar until creamy; beat in vanilla. In another bowl, stir together flour, oats and salt; gradually add to butter mixture, blending thoroughly. Add 1/4 cup crushed peppermint candies; mix until well combined. Roll dough into 3/4" balls, then roll in remaining 1/4 cup sugar to coat. Place balls about 2 inches apart on greased and floured baking sheets. Flatten cookies with fork, making a crisscross pattern with fork tines. Sprinkle each with 1/2 teaspoon crushed peppermint candies. Bake 18 to 20 minutes or until edges are lightly browned. Let cool on baking sheets 2 to 3 minutes; transfer to wire racks to cool completely. Store in airtight containers.

Makes about 48