In a large mixing bowl, combine 2 ¾ cups of all-purpose flour and 1 teaspoon of baking powder. Cut in 1 cup of softened butter until the mixture resembles coarse crumbs. Gradually add 1 cup of granulated sugar, 1 egg, and 1 teaspoon of vanilla extract. Mix until a smooth dough forms.

Once the dough is ready, wrap it tightly in plastic wrap and refrigerate for at least 30 minutes.

After chilling, lightly flour your work surface and roll out the dough to about ¼ inch thickness. Use festive cookie cutters to create shapes, cutting out the centers with a smaller cutter.

Place the cut cookies on a baking sheet lined with parchment paper. Fill each center with a heaping spoonful of crushed hard candies in various colors.

Preheat your oven to 350°F (175°C). Bake the cookies for 8–10 minutes, or until the edges are lightly golden.

Once baked, allow the cookies to cool on the sheet for about 5 minutes, then transfer to a wire rack to cool completely.

Optionally, you can poke holes at the top of each cooled cookie and thread a colorful ribbon through to hang them as ornaments.