Preheat your oven to 375°F (190°C). Line baking sheets with parchment paper.
In a large bowl, cream together the softened butter and peanut butter until smooth. Add the granulated sugar and brown sugar and beat until light and fluffy.
Beat in the egg and vanilla extract until well combined.
In a separate medium bowl, whisk together the flour, baking soda, and salt.
Gradually add the dry ingredients to the wet ingredients, mixing until just combined. Do not overmix.
Gently stir in the M&M's candies.
Drop rounded tablespoons of dough onto the prepared baking sheets, about 2 inches apart.
Bake for 10-12 minutes, or until the edges are golden brown and the centers are still slightly soft. They will firm up as they cool.
Let the cookies cool on the baking sheets for a few minutes before transferring them to a wire rack to cool completely.
Notes
Store cookies in an airtight container at room temperature for up to 3 days.