1. In a medium bowl, whisk flour, baking powder, and salt to combine and set aside.
2. Using a hand-held or stand mixer with paddle attachment beat together butter and cream cheese until thoroughly combined. Slowly add sugar and continue mixing until light and fluffy.
3. Beat in egg followed by vanilla.
4. With mixer on low speed, add dry ingredients and mix just until no flour is visible. The batter will be quite soft, in between a cake batter and a cookie dough.
5. Divide batter into bowls, one for each colour desired, and add food colouring. Refrigerate batter for one hour.
6. Pre-heat oven to 350°F (180 º C) and grease two baking sheets or line with parchment paper.
7. Scoop chilled batter into balls about 1 ½ tablespoons each and roll in icing sugar. Place on prepared baking sheet three inches apart and lightly flatten with the base of a glass so cookie is about two inches in diameter.
8. Bake in preheated oven 12 minutes. Remove from oven and carefully push candy eyeballs into the still warm cookie and allow to cool completely.
