Preheat the oven to 350°F (175°C). Grease a baking sheet and set aside.

In a large bowl, beat the softened butter, softened cream cheese, vanilla extract, and egg together until light and fluffy.

Add the entire box of white cake mix to the bowl and mix until just combined and a soft dough forms.

Divide the dough into separate bowls based on how many colors you want.

Add food coloring to each bowl and stir until the color is evenly distributed.

Cover the bowls and chill the colored dough in the refrigerator for 30 minutes.

While the dough chills, pour some powdered sugar into a shallow bowl for rolling.

After chilling, scoop or roll the dough into evenly sized balls (about 1–1½ inches each, if possible).

Roll each dough ball in the powdered sugar to coat, then place them on the prepared baking sheet about 2 inches apart. Gently pat each ball down slightly.

Bake at 350°F for 10–12 minutes, until the cookies are set around the edges.

Remove the baking sheet from the oven and immediately press candy eyeballs into the warm cookies so they adhere.

Let the cookies cool on the baking sheet for a few minutes before transferring to a plate or rack to finish cooling.