Preheat oven to 350 degrees F. Lightly coat 1 3/4-inch muffin cups with nonstick spray; set aside. In large mixing bowl beat butter on medium to high for 30 seconds. Gradually beat in 1-1/2 cups of the powdered sugar, the baking powder and salt. Beat in peppermint extract, vanilla, and egg. Beat in as much of the flour as you can; stir in remaining flour and candies.

Place remaining 3/4 cup powdered sugar in a shallow dish. Shape dough in 1-inch balls; roll in powdered sugar. Press each ball into the bottom and sides of prepared muffin cups.

Place cherry, stem side up, in each cup (cherry will not fill the cup). Bake about 12 minutes or until pastry is browned. Sprinkle with coarse sugar. Cool 10 minutes in pan. Use a small sharp knife to loosen tassies from cups. Transfer to rack to cool completely.

To store: Place tassies in a single layer in a covered airtight container. Store at room temperature up to 24 hours or refrigerate up to 3 days. Return to room temperature before serving. Makes about 48 tassies.

Kitchen tip: Find whiskey-flavored cherries, labeled Tipsy Cherries, in gourmet sections of food stores or online.