Preheat oven to 375°.
Combine flour, baking soda, and baking powder in a bowl. Set aside.
In another bowl, combine softened butter and sugar, mix until smooth and creamy.
Mix in the egg, vanilla and peppermint.
Mix in the dry ingredients.
Mix in the crushed candy.
Roll dough into small balls and place onto a cookie sheet.
Bake 8 to 10 minutes or until golden.
Remove from oven and wait a few minutes to move cookies to a wire rack to cool.
When cookies have cooled, add a small spoonful of marshmallow creme to the top of each cookie.
Gently press a Hershey Kiss Candy onto the marshmallow creme in the middle of each cookie. Remove and try again if placement is not correct. The creme will smooth out on it's own after a few seconds.
Pipe a small ball of white icing to the top of the candy to create a Santa hat.
Keep cookies flat for 30 minutes or until marshmallow creme does not spread. Move to serving plate.