Preheat oven to 350 degrees F. Prepare 2 cookie sheets by spraying with nonstick spray or putting down silicone baking mats.
In a large bowl cream together butter, peanut butter, sugar, brown sugar, egg and vanilla with a hand mixer until fluffy.
Mix in flour, baking powder, baking soda and salt until a cookie dough forms.
Place 1/2 cup of sugar in a small shallow bowl. Shape cookies into 1 inch balls, roll in sugar and place on prepared cookie sheets.
Bake for 14 to 15 minutes until slightly browned.
Once out of the oven, press thumb or small spoon into the center of each cookie to create a small well where the jam will go. Fill with a teaspoon of jam.
Allow to cool for a few minutes to harden, and then serve (and eat them all!). Enjoy!