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Step 1
In a microwave, melt white chocolate at 70% power for 1 minute; stir. Microwave at additional 10- to 20-second intervals, stirring until smooth.
Step 2
Dip one end of each cookie into melted chocolate, allowing excess to drip off. Place on wire racks. For Santa's hat, sprinkle red sugar on top part of chocolate. Press one vanilla chip off-center on hat for pompom; let stand until set.
Step 3
Dip other end of each cookie into melted chocolate for beard, leaving center of cookie uncovered. Place on wire racks. With a dab of melted chocolate, attach semisweet chips for eyes and a Red Hot for nose. Place on waxed paper until set.