Mix the flour, baking powder baking soda and salt in a bowl and set aside.
In a mixing bowl, combine the butter, both sugars and vanilla and beat with a mixer until smooth.
Add peanut butter and and beat until well blended, scraping side of bowl; add the egg and beat until mixture is light and fluffy.
Using a large scraper or mixing spoon, gradually stir the flour mixture into the peanut mixture to form a soft dough. Stir in the ground peanuts and the peanut butter chips.
Using a heaping tablespoon measure (which is about 2 tablespoons, scoop 20 gobs of dough onto foil lined plates or a foil lined tray you can fit in the refrigerator. Chill dough for an hour or until it is firm enough to shape into neat balls. Shape the chilled dough pieces into smooth balls.
Preheat oven to 350 degrees and have ready two foil or parchment lined baking sheets.
Put some sugar in a zipper bag and shake the dough balls around in the sugar until coated.
Place 2 ½ inches apart on sheets. Dip a fork lightly in water and make criss-cross patterns in each cookie (dip before each cross).
Bake the cookies for about 12-15 minutes or until the edges appear brown.
Let the cookies cool on the baking sheet for about 5 minutes, then carefully transfer to a wire rack to cool completely.