Preheat oven to 350 F.
In a large bowl beat butter, sugar, dry pudding mix and egg in a large bowl until well blended.
In a separate bowl mix together remaining ingredients.
Slowly add ingredients from secondary bowl to the butter mixture.
Refrigerate for one hour or until dough is firm.
Roll dough into one inch balls and dredge first in granulated sugar and then powdered sugar.
Place on lightly greased cookie sheet and bake at 350 degrees for 10 minutes or until cookie starts to crack.