In a bowl, cream butter and sugar; add vanilla. Stir in flour; knead until mixed well. Reserve 1/2 cup of dough; shape remaining dough into 1-in. balls. , For filling, combine cream cheese and milk in a small bowl. Stir in sugar, candy and food coloring; mix well. Make a deep well in the center of each ball; fill with 1/4 teaspoon filling. Use reserved dough to cover filling. Reshape if necessary into smooth balls. , Place on ungreased baking sheets. Bake at 350° for 12-14 minutes. Combine topping ingredients; roll cookies in mixture while still warm. Cool on wire racks.