Preheat oven to 350 degreesPrepare baking sheets using non-stick cooking spray or cover with parchment paper or a silicone baking mat.
Place candy canes in a zip lock bag and crush using a rolling pin
In a large bowl, mix butter and sugar together until light and fluffy, whip in vanilla and egg, scraping the sides of the bowl and mixing well
In a separate bowl stir flour, salt, baking powder and baking soda together, pour into the large bowl and mix carefully until well combined with the butter, sugar, egg mixture
Fold in the crushed candy cane and mix gently
Pour powdered sugar on a large plate. Scoop a heaping teaspoon of dough, form into a ball and roll in the powdered sugar, place on baking sheets
Repeat with remaining dough, placing dough balls far enough apart so they have plenty of room without melting into each other
Bake 10-12 minutes until bottoms just start to brown, remove from oven and let cool about 3 minutes prior to moving to a cooking rack