In a large bowl, beat butter, cream cheese and sugar until smooth. Add vanilla, food coloring and egg, and mix until combined.

In another bowl, whisk together flour, baking powder and salt. Add to butter mixture and mix until just combined. Refrigerate, covered, 1 hour or until firm enough to shape.

Preheat oven to 350°. Use a medium cookie scoop or tablespoon to form dough into 1 inch balls. Roll in powdered sugar so all sides are covered. Place 2 inches apart on ungreased baking sheets.

Bake until tops are cracked and edges are set, 12-15 minutes. Immediately press a gummy heart into each cookie, pressing down to flatten cookie some. Cool cookies 5 minutes before removing to wire racks to cool.