PREPARATION:

1. Combine flour, butter, melted peanut butter chips, granulated sugar, brown sugar, egg, milk and vanilla in large bowl. Beat with electric mixer at low speed 1 to 2 minutes, scraping bowl often, until well blended. Divide dough in half. Wrap each half in plastic wrap; refrigerate 1 to 2 hours or until firm.
2. Preheat oven to 375°F. Roll dough on well-floured surface to 1/8-inch thickness. Cut desired shapes using 2-1/2-inch cookie cutters. Place 1 inch apart on ungreased cookie sheets. Bake 5 to 8 minutes or until edges are lightly browned. Remove immediately to wire racks; cool completely. Decorate with icing as desired or sprinkle with powdered sugar.