Combine thawed Cool Whip and instant pudding mix in a medium or large mixing bowl until smooth and creamy.

Add vanilla extract and gradually incorporate powdered sugar until a soft, slightly stiff dough forms.

Cover the bowl and chill the mixture in the refrigerator for 30-60 minutes, or until firm enough to handle.

Line a baking sheet with parchment paper. Using a small scoop or tablespoon, portion out small balls of the chilled mixture.

Roll each portion between your hands to form smooth balls and place on the parchment-lined sheet.

Roll each candy in additional powdered sugar for an even coating.

Return to the refrigerator to set for 15-20 minutes before serving.