Step 1

In a large bowl, cream butter and sugar until light and fluffy, 5-7 minutes. Beat in vanilla. Gradually add flour. Stir in nuts if desired. Knead dough until smooth. If dough is too soft to shape, refrigerate for 15 minutes.

Step 2

In small bowl, beat the cream cheese, sugar, milk, candy and, if desired, food coloring. Roll tablespoonfuls of dough into balls. Using the end of a wooden spoon handle, make a deep indentation in the center of each.

Step 3

Fill dough balls with 1/4 teaspoon filling each; cover each with 1/4 teaspoon dough and seal. Gently reshape into balls. Combine topping ingredients; roll balls in topping. Chill in refrigerator for 20 minutes.

Step 4

Place 1 in. apart on ungreased baking sheets. Bake at 350° for 10-12 minutes or until firm. Roll warm cookies in remaining topping; cool on wire racks.