Read and see more at Bake or Break.Recipe from The Magnolia Bakery Cookbook: Old-Fashioned Recipes From New York’s Sweetest Bakery.
Preheat oven to 350°.
Combine flour, baking soda, baking powder, and salt. Set aside.
In a large bowl, beat butter and peanut butter until fluffy. Add sugar and brown sugar, beating until smooth. Add egg, mixing well. Add milk and vanilla extract. Gradually add flour mixture and mix until combined. Stir in peanut butter chips.
Drop by rounded teaspoonfuls onto ungreased baking sheets. Leave several inches between cookies. Lightly indent the tops of the cookies with a fork. Do not overly flatten cookies. Sprinkle each cookie lightly with sugar.
Bake for 10-12 minutes. Cookies may not look done, but do not overbake. Cool on baking sheets for 1 minute. Transfer to wire racks to cool completely.
Makes about 3 dozen cookies.
*I prefer using a coarse sugar for sprinkling on top of cookies.