Preheat oven to 350 degrees.
Lightly grease a cookie sheet, set aside.
Add butter, peanut butter, granulated sugar and brown sugar in a large bowl and cream using a hand mixer or a stand mixer fitted with the paddle attachment.
Add egg, mix until combined.
In a separate bowl, whisk together dry ingredients (flour, baking soda, baking powder, salt).
Add dry ingredients to wet ingredients, about ½ cup at a time. Mix until combined.
Roll dough into 1-inch balls and coat in sugar.
Place rolled and coated dough on prepared cookie sheet, leaving 1 inch between each cookie. Lightly press each cookie down with two fingers.
Bake for 6-10 minutes, removing them from the oven once they just begin to crack, before the edges begin to brown.
Immediately use thumb or two fingers to create imprint in the middle of the baked cookies.
Let cookies rest for 5-10 minutes, then move them to a cooling rack and cool to room temperature before topping them.