Preheat oven to 350°F. Generously coat a mini-muffin pan with cooking spray; set aside.

In a large mixing bowl beat butter on medium to high speed 30 seconds. Gradually beat in 1-½ c of powdered sugar, baking powder and salt. Beat in peppermint extract, vanilla and egg. Beat in as much of the flour as you can. Using a spoon, stir in any remaining flour and candies.

Place remaining ¾ c powdered sugar in a shallow dish. Shape the dough into 1" balls; roll in powdered sugar. Press each ball into bottom and up sides of prepared muffin c.

Place cherry, stem side up, in each c (cherry will not fill c). Bake about 12 minutes or until pastry is browned. Sprinkle with coarse sugar. Cool 10 minutes in pan.

Using a small, sharp knife, loosen tassies from c. Transfer to wire rack. Cool completely. Makes about 48 tassies.