1. Heat oven to 375°F. Grease 9-inch square baking pan.
2. Stir together flour, sugar and baking powder in large bowl. Cut in butter with pastry blender or two knives until mixture resembles coarse crumbs. Add egg; blend well. Reserve 1 cup mixture; press remaining mixture onto bottom of prepared pan. Stir jelly to soften; spread evenly over crust. Sprinkle 1 cup peanut butter chips over jelly. Stir together reserved crumb mixture with remaining 2/3 cup chips; sprinkle over top.
3. Bake 25 to 30 minutes or until lightly browned. Cool completely in pan on wire rack. Cut into bars.
Tip
For a whimsical twist on this tried-and-true classic, use cookie cutters to cut out shapes for added fun.