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Cream butter and sugar until fluffy. Add egg yolk and vanilla; beat until mixed in, scraping down side of bowl often. Add flour and mix on low speed until dough comes together in a ball.
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Divide the dough in three equal portions. Wrap each portion in plastic wrap; refrigerate for at least 1 hours .
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Heat oven to 375 F. Line baking sheets with parchment paper.
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Crush the candies in blender or mortar and pestle. Keep each color separate.
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Remove one piece of dough from the refrigerator and roll out dough 1/8-inch thick. Cut out dough with cookie cutter. Cut out center of each cookie with another smaller cutter. Transfer to prepared baking sheets.
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Carefully fill the cutouts with candy. Sprinkle cookies with some sugar. Bake at 375 F until cookies are firm and Browned at the base. About 8 minutes.
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Repeat with the entire dough.