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1. Combine butter and the 1 cup powdered sugar in a large mixing bowl; beat with an electric mixer on medium speed for 3 minutes. Add egg yolk and vanilla and beat until well mixed. Gradually beat in flour. Stir in potato chips and pecans with a wooden spoon.
2. Drop by rounded teaspoons onto a greased cookie sheet. Bake in a 350 degree F oven for 10 minutes. Transfer to a wire rack. While cookies are still warm, sift with powdered sugar. Cool completely. Store in airtight containers. Makes 40 cookies.