1In large bowl, beat sugar, butter, vanilla and eggs with electric mixer on medium speed, or mix with spoon. Stir in flour, baking powder and salt. Cover; refrigerate about 1 hour or until firm.
2Heat oven to 375°F. Cover cookie sheet with parchment paper or foil. On lightly floured cloth-covered surface, roll one-third of dough at a time 1/8 inch thick. Cut into desired shapes with cookie cutters. Cut shapes from centers of cookies as desired. Place cookies on parchment paper.
3Place whole or partially crushed pieces of candy in cutouts, depending on size and shape of design, mixing colors as desired. Leave pieces as large as possible because candy melts easily; do not use fine candy "dust." (To crush candy, place in heavy plastic bag and tap lightly with rolling pin.) Place cutouts from centers of cookies on top of candies, if desired.
4Bake 7 to 9 minutes or until cookies are very light brown and candy is melted. If candy has not completely spread within cutout design, immediately spread with knife. Cool completely on parchment paper, about 30 minutes. Gently remove cookies to cooling rack.