In large bowl, beat butter until light and fluffy. Add cornstarch and 1/3 cup powdered sugar; beat at low speed until moistened. Beat at high speed until light and fluffy.
Lightly spoon flour into measuring cup; level off. Add flour; mix until dough forms. Cover with plastic wrap; refrigerate 1 hour for easier handling.
Heat oven to 350. Shape dough into 1 inch balls. Place 1 inch apart on ungreased cookie sheets.
Bake at 350 for 9 to 15 minutes or until cookies are very light golden brown. Cool 1 minute. Remove from cookie sheets; place on wire racks.
In small bowl, combine candy and 3 tablespoons powdered sugar; carefully roll warm cookiesin mixture.
Makes 3 dozen cookies.