Preeheat oven to 400. Mix flour and baking powder; set aside. Beat butter in large bowl with electric mixer on medium speed until creamy. Gradually add sugar and 1 pkg. of the dry gelatin, beating until light and fluffy. Add egg and vanilla; mix well. Gradually add flour mixture, beating until well blended after each addition,
Shape dough into 1" balls. Place cookies 2" apart on ungreased baking sheets. Flatten with bottom of glass. Sprinkle lightly with remaining pkg. of dry gelatin.
Bake 8-10 minutes or until edges are lightly browned. Remove from baking sheets to wire racks.
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