Preheat oven to 350 degrees. Line a cookie sheet with parchment paper.
In a mixing bowl, add in the butter, shortening and peanut butter. Mix on medium until combined.
Add in the 1 cup of granulated sugar and vanilla bean paste. Mix until light and fluffy.
Add in the eggs one at a time until incorporated.
Add in the flour, baking powder and salt. Mix until a dough ball forms.
Scoop the cookies out using a cookie scoop. Roll the dough ball between your two palms.
Place the remaining ¼ cup of granulated sugar in a shallow little bowl.
Roll the dough balls into the sugar.
Press down the center of the dough to form the thumbprint.
Place a teaspoon (or more depending on how big of a thumbprint you made) of jelly into the hole.
Place into the oven and bake for 12 - 14 or until done. Place on a cooling rack to cool. If you need the jelly spread out more, gently spread out with a toothpick.
Notes
To store any leftover peanut butter and jelly thumbprint cookies, place in an air tight container in the refrigerator for up to 3 days.