In a large bowl, cream the butter, peanut butter and sugars. Add egg; beat well. Beat in vanilla. Combine the flour, baking powder and baking soda; gradually add to creamed mixture.
Insert a lollipop stick into a side of each candy bar until stick is nearly at the opposite side. Press 1 heaping tablespoon of dough around each candy bar until completely covered. Press dough tightly around the end of the candy bar and the stick.
Place 3 in. apart on lightly greased baking sheets. Bake at 350° for 14-16 minutes or until cookies are set. Cool for 1-2 minutes before removing from pans to wire racks to cool completely.