Preheat your oven to 350°F (175°C).
In a mixing bowl, combine the cool whip, cake mix, and egg until well blended.
If desired, add food coloring to the mixture.
Chill the dough in the refrigerator for 30 minutes.
Scoop tablespoon-sized portions of dough.
Roll each portion in powdered sugar to coat.
Place the dough balls on a baking sheet lined with parchment paper.
Bake for 10-12 minutes or until edges are set.
Let the cookies cool on the baking sheet for a few minutes.
Transfer to a wire rack to cool completely before adding sprinkles.