In a large mixing bowl, beat the butter, vanilla, egg and cream cheese until fluffy. Mix in cake mix.
Divide the batter into smaller bowls for the amount of different colors you want. Add food coloring to each individual bowl and mix until all combined.
Chill for 30 minutes in the fridge.
Preheat oven to 350°F/175°C.
Shape into balls and roll in a bowl of powdered sugar to coat. Place on greased or lined cookie sheet and pat dough down a bit.
Bake for 10-12 minutes.
Press candy eyeballs into cookies while the cookies are still warm. Enjoy!