In a large bowl, cream the shortening, peanut butter, 1-1/2 cups sugar and brown sugar until light and fluffy. Add eggs, one at a time, beating well after each addition. Combine dry ingredients; gradually add to the creamed mixture and mix well. Chill for at least 1 hour.
Shape 4 teaspoons of dough around each Milk Dud so it is completely covered. Roll balls in remaining sugar.
Place 2 in. apart on ungreased baking sheets. Bake at 350° for 10-12 minutes or until set.