1. Heat oven to 375° F. Beat shortening and peanut butter in large bowl until well blended. Add 1/3 cup granulated sugar and brown sugar; beat until fluffy. Add egg, milk and vanilla; beat well. Stir together flour, baking soda and salt; gradually beat into peanut butter mixture.
2. Shape dough into 1-inch balls. Roll in granulated sugar, if desired; place on ungreased cookie sheet.
3. Bake 8 to 10 minutes or until lightly browned. Remove from cookie sheet to wire rack. Cool completely.
4. Frost center of cookie with vanilla frosting to form white portion of eye. Decorate with red and black frostings to form outline of eye and bloodshot markings. Press malted milk ball "iris" into center of eye. Makes about 48 cookies.