Heat oven to 350°F. In small resealable food-storage plastic bag, place candy canes. Crush finely with rolling pin or mallet.
In small bowl, combine crushed candy canes with the sugar and cinnamon; set aside.
In large bowl, break up dough; stir in flour until well mixed. Reshape into log; cut cookie dough into 32 (1/4-inch) slices. Shape each into ball; roll in candy cane mixture. On ungreased cookie sheets, place balls 2 inches apart.
Bake 10 to 14 minutes or until edges are golden brown. Cool 1 minute; remove from cookie sheets to cooling racks. Cool completely; store in airtight container.