Melt the butter and chocolate together and mix thoroughly and set to the side to cool. You can do this in a microwave safe bowl for 3 minutes on high, or in a pan over low heat on the stovetop.
In a large bowl, combine the sugar and eggs. Beat the mixture until it's a uniform pale yellow color.
Add the baking soda and salt. Mix them in well. Mix in the corn syrup, water and vanilla.
Cup your hands around the bowl with the butter and chocolate. If it's cool enough to handle comfortably, add to your bowl now and mix it inches If not, let it cool a bit more then add it.
Add half the flour to your bowl and mix it inches Then add the remaining flour and mix thoroughly.
Give the bowl a final stir by hand, cover it with plastic wrap and let it rest on the counter while you spray your cookie sheets with Pam and crush your candy canes. .
Measure out a quarter cup of crushed candy canes and place them in a small bowl. Add the quarter cup sugar and mix with a fork. The goal is to get equal amounts of both on the dough balls that you will make.
Roll the dough into 1" diameter balls with your hands. This dough may be sticky so roll only enough for the cookies you plan to bake immediately and place the bowl in the refrigerator.
Roll the dough balls in the topping and place on a greased cookie sheet, 12 balls to a standard sheet. Flatten slightly with a metal spatula or your clean hand.
Bake at 350 for 8-10 minutes. Cool on the cookie sheet for a minute and then remove to a wire rack to cool completely. If you leave them on the sheet longer than that they will stick!