Beat shortening it medium speed of an electric mixer until fluffy; gradually add sugar, beating well. Combine flour, baking powder, and salt. Add to creamed mixture alternately with milk, beginning and ending with flour mixture. Mix after each addition. Stir in vanilla.

Beat egg whites at high speed of an electric mixer until stiff peaks form; gently fold into batter. Pour batter into 3 greased and floured 9-inch round cakepans.

Bake at 350F for 20 minutes or until a wooden pick inserted in center comes out clean. Let cool in pans on wire racks 10 minutes. Remove from pans, and let cool 10 minutes on wire racks. Prick warm cake layers at 1?inch intervals with a fork. Spoon Peppermint Glaze over layers; let cool completely.

Place 1 cake layer on plate. Spread with 1 cup Fluffy Frosting, and sprinkle with 2 tablespoons crushed peppermint candy. Repeat with second cake layer. Add third cake layer, and frost top and sides of cake with remaining 3 cups Fluffy Frosting. Sprinkle remaining 1/4 cup crushed peppermint around edge of cake top, making a 2-inch hand. Place peppermint sticks in a zigzag pattern around sides of cake. Place round peppermints at points where peppermint sticks meet.

Peppermint Glaze

Combine all ingredients in a small saucepan. Bring to a boil, stirring constantly, and cook, stirring constantly, 1 minute. Yield: I cup.

Fluffy Frosting

Combine first 3 ingredients in a saucepan. Cook, stirring constantly, over medium heat until sugar dissolves. Cook, without stirring, to soft ball stage (until candy thermometer registers 240F). Beat egg whites at high speed of an electric mixer until soft peaks form; continue beating, adding sugar syrup mixture in a heavy stream. Add vanilla; beat until stiff peaks form and frosting is spreading consistency. Yield: 5 cups.