Heat oven to 350°F. Line cookie sheets with cooking parchment paper or foil. (If using foil, smooth out all wrinkles.) Place 3 to 4 candies of the same color in small plastic bag; seal bag. With hammer or flat side of meat mallet, gently pound to crush candy. Repeat with remaining candies, using several different colors.
In large bowl, break up cookie dough. Stir or knead in 1/4 cup flour until well blended. Remove half the dough, and refrigerate remaining dough until needed. Sprinkle 2 tablespoons flour onto work surface. Roll out dough 1/8 inch thick, using additional flour as needed to prevent sticking. Cut out dough with floured 2-inch cookie cutter. With smaller cookie cutter or sharp knife, cut out center of cookie, leaving about 1/2-inch frame.
On separate ungreased cookie sheet, place small center cutouts. Bake 4 to 6 minutes or until light golden brown.
Gently brush excess flour from cutout cookies. On paper-lined cookie sheets, place cutout shapes 2 inches apart, using pancake turner. With drinking straw, make hole in top of each cookie. Place 1/4 to 1/2 teaspoon crushed candy in center of each cutout cookie, making sure candy touches edges of cookie. (Do not mound candy in centers of cookies.)
Bake 5 to 9 minutes or until edges of cookies are light golden brown and candy is melted and fills center of cookie. Cool 2 to 5 minutes on cookie sheets or until candy is hardened. Reshape holes for ribbon, if necessary. Remove cookies from cookie sheets to cooling racks. Cool completely, about 15 minutes. Repeat with remaining half of dough, flour and candy.
Frost and decorate cookies. Cut ribbon into 9- to 12-inch lengths. Insert piece of ribbon through hole of each cookie; tie in knot or bow.