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Cream the softened butter and confectioners' sugar together in a stand mixer fitted with the paddle attachment (or using a hand mixer) until light and fluffy, about 2-3 minutes.
Add the egg yolk and vanilla bean seeds and mix until combined.
Sift the flour over the butter mixture and mix on low speed until just combined, being careful not to overmix.
Turn the dough out onto a lightly floured surface and shape into a disk. Wrap in plastic wrap and refrigerate for a minimum of 2 hours, or up to 3 days.
Preheat the oven to 350°F (180°C). Line baking sheets with silicone baking mats or parchment paper.
Place the granulated sugar in a shallow bowl. Working with one portion at a time, roll the dough into 1-inch balls, then roll in the granulated sugar to coat completely.
Arrange the coated dough balls about 2 inches apart on the prepared baking sheets.
Bake for 12-15 minutes, until the edges are lightly golden. Allow to cool on the baking sheets for 5 minutes before transferring to a wire rack to cool completely.