I have been baking since the year Katherine was born, the year I received The Frugal Gourmet Celebrates Christmas by Jeff Smith --- beth

Dough:

• 1 cup (2 sticks) butter, softened (do not substitute margarine or shortening)
• 1/2 cup confectioners' sugar
• 1 tsp. vanilla
• 2 1/2 cups all-purpose flour
• 1/2 cup walnuts, chopped

Cream butter, sugar and vanilla together until fluffy. Add the flour and walnuts and blend to form a dough. Wrap in plastic wrap and chill for 1 hour. 

Candy Mixture for Garnish:

• 1/4 pound peppermint candy, crushed fine (it helps to have Earl take these outside and do it for you.... in a plastic bag, with a  cast iron skillet.)
• 1/2 cup confectioners' sugar

In a small bowl, combine both ingredients. Set aside. Three tablespoons of mixture is used in filling below and remainder is used to garnish cookies.

The Filling:

• 2 Tblsp. cream cheese, softened
• 1 tsp. milk
• 1 drop red food coloring (you can leave this out)
• 1/2 cup confectioners' sugar
• 3 tablespoons candy mixture (see above)

In a bowl, blend the cream cheese, milk, food coloring and confectioners' sugar until smooth. Blend in the 3 Tblsp. candy mixture.

Remove dough from refrigerator and for each cookie pinch off a rounded tsp. of dough. Form into a ball , place on greased cookie sheet. Press your thumb in  middle to make a depression. Place about 1/4 tsp. of cream cheese filling in depression. Repeat process with remaining dough and filling. Bake in preheated 350 degree F oven for 10-12 minutes. Do not brown.
Remove the cookies to cooling rack. To garnish, dust the cooled cookies in remaining candy mixture.