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Preheat oven to 350 degrees F.
Combine butter and sugar until light and fluffy.
Reserve 1-2 tbsp jello powder for decorating, and add the rest to butter and sugar.
Add egg and vanilla to butter mixture.
Mix flour and baking powder in a separate bowl, then gradually add the flour mixture into the butter mixture.
For soft and chewy cookies, refrigerate cookie dough for 20-30 minutes.
Shape dough into 1 inch balls and sprinkle lightly with the reserved 1-2 tbsp of jello powder.
Bake for 8-10 minutes or until edges are lightly browned.