Line two large baking sheets with parchment paper or silicone baking mats. Set aside.
In a large bowl or the bowl of a stand mixer cream together 1/2 cup unsalted butter, 1/2 cup granulated sugar, and 1/3 cup brown sugar with a hand mixer or paddle attachment. Mix on a medium-high speed for 1-2 minutes, until the mixture becomes lighter in color.
Add in 1/2 cup of peanut butter, 1 large egg, and 2 tsp of vanilla extract. Mix on a medium-high speed until combined. Scrape down the sides and bottom of the bowl with a rubber spatula as needed.
In a separate bowl, whisk together 1 1/2 cups all-purpose flour, 1/2 tsp baking soda, 1/2 tsp baking powder, and 1/2 tsp salt.
Add the dry ingredients into the wet ingredients and mix on a low speed until combined. Scrape the sides of the bowl with a rubber spatula as needed. The cookie dough should be pretty thick and sticky.
Scoop 12 cookie dough balls that are roughly 3 Tbsp each onto the prepared baking sheets and chill for 30 minutes or overnight in the fridge. Chilling the dough helps the cookies spread less which makes softer, chewier cookies, so don't skip this step!!
As you put the cookie dough in the fridge, preheat the oven to 350 F / 175 C.
Once the cookie dough balls have chilled, use your hands to roll them into round balls and toss them in granulated sugar.
Place cookie dough balls about 3 inches apart on the baking sheets. They will spread out quite a bit as they bake! Use a fork to flatten the cookies a bit and create a crisscross pattern on top of each cookie dough ball.
Bake for 13-15 minutes, or just before the cookies start to brown on the sides. I like my cookies soft, so I always err on the side of them being slightly underbaked. The centers will look soft and slightly undone but remember the cookies will continue to bake a bit once they're removed from the oven.
Let the cookies cool on a baking sheet for 15 minutes before transferring to a wire rack to cool completely.