Beat peanut butter, 1/2 cup white sugar, butter, and brown sugar together in a bowl until creamy. Beat in egg and vanilla extract until combined.

Combine flour, baking soda, baking powder, and salt in a separate bowl. Stir into the peanut butter mixture. Refrigerate dough for at least 1 hour.

Preheat the oven to 375 degrees F (190 degrees C).

Roll dough into 1-inch balls. Roll in remaining white sugar to coat. Place on baking sheets about 2 inches apart.

Bake in the preheated oven until cracks form on the surface of the cookies, about 10 minutes. Remove from oven and place a milk chocolate kiss in the center of each cookie, pressing down gently. Transfer to a wire rack to cool.