Crush 16 coookies; toss with the butter. Press onto the bottom of an ungreased 9-in.square dish. In a mixing bowl, beat the cream cheese, peanut butter and 1 cup confectioners' sugar until smooth. Fold in half of the whipped topping. Spread over crust. Sprinkle with peanut butter cups.
In another mixing bowl, beat the milk, pudding mix and remaining confectioners' sugar on low speed for 2 minutes. Fold in remaining whipped topping. Spread over peanut butter cups. Crush remaining cookies; sprinkle over the top. Cover and chill for at least 3 hours. 12-16 servings.