Instructions: Combine peanut butter chips and chocolate chips in the top of a double boiler; bring water to a boil. Reduce heat to low; cook until chips melt. Remove from heat, and stir in 1/4 cup powdered sugar and peanuts. Let stand at room temperature 30 minutes or until mixture is firm enough to make into balls. (Do not refrigerate.) Make into 3/4 inch balls, and let stand until firm. Combine flour, butter, and vanilla in a large mixing bowl; beat at medium speed with an electric mixer until blended. Shape dough into a 10 inch log; cut into 1/4 inch slices. Gently press a dough slice around each ball; place on ungreased cookie sheets. Bake at 375 degrees F. for 18 minutes or until cookies are lightly browned. Remove to wire racks to cool slightly. Roll in 1 cup powdered sugar, and cool completely on wire racks.

Yield: 3 dozen

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