Preheat oven to 350°.

Beat butter in large bowl with mixer until creamy. Add sugar and beat until light and fluffy. Blend in egg and vanilla.

Mix flour and baking powder in a separate bowl. Gradually beat in flour mixture.

Divide dough into 4 sections. Add a packet of Jell-O to each section. Knead together with dough. You may want to add a few drops of food coloring to make the dough more vibrant.

Shape dough into 1-inch balls. Roll in white sugar. Place, 2 inches apart, on parchment lined baking sheets. Slightly flatten with bottom of bowl or cup.

Bake 8 to 10 minutes on lined baking sheets. Cool on baking sheets 2 min. Remove to wire racks and cool completely.