In a bowl, combine first five ingredients and set aside.

In a large bowl, cream cream cheese and butter together. Beat in egg and food coloring.

Add dry ingredients to creamed mixture and mix until dough forms.

Cover and chill for two hours.

Place powdered sugar in bowl. Drop 1" balls of dough into powdered sugar and roll to coat. Place on a greased cookie sheet or one lined with parchment paper.

Bake at 350 degrees F. for 14 minutes and let cookies completely cool before storing in airtight container.