In a small bowl, stir together the 1/4 cup sugar and cinnamon.
In a large mixing bowl cream together the butter, peanut butter and sugars.
Add egg and vanilla and mix on low until combined.
In a separate bowl combine dry ingredients and slowly add to the large mixing bowl.
Continue to mix until just combined.
In another small bowl, stir peanut butter and powdered sugar until completely blended.
Shape mixture into 24 balls, about 1 inch each.
Flatten about 1 tablespoon of dough in your hand and place a peanut butter ball in the middle.
Wrap the dough around the ball and roll in cinnamon sugar.
Place on baking sheet and bake at 375 for 8 min.
When they are done you can quickly top with chocolate chips if you so desire.