Preheat oven to 350° F. Line two cookie sheets with parchment paper and set aside.
In a medium bowl, whisk together flour, baking soda, baking powder and salt. Set aside.
In the bowl of an electric stand mixer or using a hand mixer, beat butter, brown sugar and peanut butter until fluffy, about 4 minutes. Add egg and vanilla and mix until incorporated, about 30 seconds. With mixer set on low speed, slowly add in flour mixture and mix until combined being careful not to over mix.
Set up two small bowls. Pour granulated sugar into one bowl and pour 1/2 cup confectioners' sugar into the other bowl. Scoop about 1 tablespoon of dough and shape into a ball, then roll the ball in granulated sugar to coat first and then roll into powdered sugar until it is generously coated. Repeat with remaining cookie dough and place dough balls 2-inches apart on prepared cookie sheets.
Bake cookies 12 to 14 minutes or until cookies are just firm around the edges and cracked on top. Let cool on the baking sheets for 2 minutes, then transfer to a wire rack to cool completely.
While cookies are still slightly warm, place remaining 1/4 cup confectioners' sugar into a shallow dish and shake dish to level the sugar. Dip tops of cookies into powdered sugar - be gentle here so the sugar doesn't press into the crinkles. Enjoy!
Notes
Peanut butter: For best results use creamy peanut butter. Don't use natural or chunky peanut butter. Natural peanut butter will separate and chunky peanut butter will prevent the cracks from forming in the cookies.Store cookies in an airtight container at room temperature for up to 5 days.Cookie dough freezes well for up to three months. Wrap it in plastic wrap. Defrost in the refrigerator then bring to room temperature.