Preheat the oven to 175 °C for the butter balls. Mix butter, powdered sugar, vanilla sugar, cinnamon, flour and baking powder and knead together with pudding powder with your hands to a dough.
Line a baking tray with baking paper, form 2 cm balls from the dough and spread them on it. Bake for 15-20 minutes and roll in powdered sugar while still hot.