Preheat oven to 375 degrees and line 2 baking sheets with parchment paper.
Place sweetened condensed milk and peanut butter in a large bowl.Beat with a hand-held electric mixer until combined.
Mix in Bisquick and vanilla.
Shape into 48 (1-inch) balls. Place the granulated sugar in a small bowl and roll the tops of the balls in the sugar and then place on prepared baking sheets.Note: They will not spread out so you can place them fairly close together.
Bake 7 to 9 minutes. Press a rolo candy into the top of each one. Bake for 1 minute. Let cool on baking sheet 5 minutes and then remove to a wire rack to cool completely.