In a large bowl, with a stand or hand mixer cream butter until smooth. Add in 1/2 cup powdered sugar and beat until fluffy. Add in vanilla and mix until combined.
In another bowl combine flour and dry pudding mix until combined. Gradually add flour mixture into butter mixture until it forms a dough.
Pour dough onto wax paper and form a ball. Wrap and refrigerate for 1 hour.
Remove from refrigerator and use teaspoon measuring spoon to make a cookie ball. Take back of measuring spoon to slightly press ball.
Place on parchment lined baking sheet and bake on 350 degree preheated oven for 6 to 9 minutes. Remove and let cool 3 to 5 minutes on baking sheet.
Using remainder of powdered sugar. Roll cookies in sugar and place on wire rack to cool completely. Store in air tight container.