In large mixing bowl, beat butter, sugars and egg. Add vanilla and dry ingredients. Dough will be thick and stiff. Stir in chocolate chips.
Drop by tablespoons onto parchment paper covered baking sheet. Bake for 9 minutes. Cookies will look very soft in center. Cool for 5 minutes before removing from pan.
Melt white chocolate. Make sure chocolate chips in cookies are hardened before dipping cookies in white chocolate. Dip cookies halfway into chocolate and place on waxed paper. Sprinkle with crushed candy canes on top of white chocolate. Place in fridge to harden.