Heat oven to 375°. Combine flour, 1/2 cup granulated sugar, brown sugar, baking soda, salt, shortening, peanut butter, milk, vanilla and egg. Beat at low speed until dough is stiff.
Shape dough into 1-inch balls; roll in sugar. Place 2 inches apart on ungreased baking sheets.
Bake at 375° for 10 to 12 minutes or until golden brown. Immediately top each cookie with a Kiss, pressing down firmly so that cookie cracks around edges. Remove from baking sheets to racks to cool.