In a large bowl, cream butter and confectioners’ sugar until light and fluffy. Beat in vanilla. Gradually add flour and mix well. Stir in pecans. Refrigerate for 3-4 hours or until easy to handle.
Roll into 1-in. balls. Place 2 in. apart on ungreased baking sheets. Bake at 350° for 18-20 minutes or until lightly browned. Remove to wire racks to cool.
In a microwave, melt candy coating, stir until smooth. Dip the top of each cookie into the candy coating; allow excess to drip off. Dip into peppermint candy. Place on waxed paper; let stand until set.Yield: 5 dozen.