Put your candy canes in a plastic zip bag and use a rolling pin to crush them into pieces. We prefer a hammer, but pound gently enough not to break the bag. You can also minimize tears by placing a towel over the bag before hammering.
In a medium bowl, whisk together flour, salt, baking powder, and baking soda. Set aside.
In a large bowl, cream together butter and sugar until light and fluffy. Add in the vanilla and egg and mix well
Slowly mix in the dry ingredients (excluding the powdered sugar) until dough forms.
Gently mix in the crushed candy canes until just combined.
Pour powdered sugar on a large plate.
Roll a tablespoon sized amount of dough into a ball and roll it in the powdered sugar, shaking off the excess. OR, roll out dough style and use Christmas shaped cookie cutters. If making shapes, sprinkle powdered sugar on cookies on sheet rather than rolling them.
Place on prepared baking sheet and repeat with remaining dough. If adding chocolate, mix in with batter, or, place one chunk per cookie in the middle of the cookie once it's on the cookie sheet.
Bake for 9-10 minutes or until bottoms begin to barely brown and the cookies have a matte sheen to them. Remove and let sit for 3 minutes before transferring to a cooling rack.