Preheat oven to 350 degrees F. Line a cookie sheet with parchment paper.
In a mixing bowl, beat butter, vanilla, cream cheese, and egg until well blended and fluffy. Add food coloring. Blend. Stir in cake mix until well blended.
Roll into 1 inch balls (I used my cookie scooper) and roll in powdered sugar before placing on prepared cookie sheet. (I liked them better when I flattened the dough lightly with my palm otherwise the cookies were really poofy and round instead of flat.)
Bake in preheated oven for about 10 minutes. remove from oven and immediately lightly press a candy eye into center. Allow to cool completely before removing from pan.