Heat oven to 350°F. MIX powdered sugar and crushed candy in small bowl. Work with 1/3 of the dough at a time, keeping remaining dough refrigerated. Shape dough into 1-inch balls; roll in granulated sugar first and then in crushed candy mixture. Place 2 inches apart on parchment paper-lined or ungreased baking sheets.
Insider tip/trick to keep your cookies white – roll the cookie dough ball in granulated sugar before rolling it in the powdered sugar/crushed candy cane mix.
Chilled dough is easier to handle and holds its shape better.