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Preheat oven to 350°F. In a large bowl combine shortening and peanut butter. Beat with an electric mixer on medium to high speed for 30 seconds. Add the 1/2 cup granulated sugar, brown sugar, baking powder, and baking soda. Beat until combined, scraping sides of bowl occasionally. 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.
Shape dough into 1-inch balls. Roll balls in the 1/4 cup granulated sugar to coat. Place 2 inches apart on an ungreased cookie sheet.
Bake in the preheated oven for 10 to 12 minutes or until edges are firm and bottoms are light brown. Immediately press a chocolate kiss into each cookie's center. Transfer to a wire rack; cool completely.