In a large bowl, beat the butter until light and fluffy. In a separate medium bowl, whisk together the flour, cornstarch, icing sugar and salt. Add the dry ingredients to the butter in two additions, blending after each to combine into a soft dough. Stir in the candy cane.
Refrigerate mixture for at least 30 minutes. Preheat oven to 300F.
Roll cookies into 1 in. round balls and place on cookie sheets lined with parchment paper, a couple of inches apart. Note that the parchment paper is important – I tried baking some on an ungreased cookie sheet and some on Silpat and both spread, but the ones I baked on parchment paper kept their shape. Use a fork to flatten each ball.
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Bake for 15-20 minutes, until edges are light golden brown. Let cool on cookie sheet for 5 minutes before carefully transferring to a wire rack to finish cooling.
Once cookies are cool, melt chocolate chips in a small bowl. Dip the edge of each cookie into the chocolate and set back on the wire rack, over a pan or parchment paper to catch any mess. Sprinkle crushed candy cane over the chocolate. Let chocolate harden before storing cookies in a container.
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