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In a large bowl, beat shortening and peanut butter with an electric mixer on medium speed for 30 seconds. Add 1/2 cup granulated sugar, brown sugar, baking powder and baking soda. Beat until combined, scraping the sides of bowl. Beat in egg, milk and vanilla until combined. Beat in as much of the flour as you can with the mixer. Stir in any remaining flour.
Preheat oven to 350°F. Shape the dough into 1-inch balls. Roll the balls in the remaining 1/4 cup granulated sugar. Place 2 inches apart on an ungreased baking sheet. Bake for 10 to 12 minutes or until edges are firm and bottoms are lightly browned. Immediately press a chocolate kiss (or star) into each cookie's center. Transfer the cookies to a wire rack; let cool.