In a large bowl, beat butter, cream cheese and sugar until smooth.
Beat in vanilla, green food coloring and eggs, one at a time, beating well after each addition.
In another bowl, whisk together flour, baking powder and salt; gradually beat into creamed mixture.
Refrigerate, covered, 1 hour or until firm enough to shape.
Preheat oven to 350°F.
Shape dough into 1-1/2 inch balls; roll in confectioners' sugar.
Place 2 inches apart on ungreased baking sheets.
Bake until tops are cracked and edges are set, 12-15 minutes.
Immediately press a gumdrop into each cookie.
Cool cookies 5 minutes before removing to wire racks to cool.
