Cook cream cheese and butter in a saucepan over low heat, stirring constantly, until smooth. Gradually stir in package of powdered sugar; stir in extract. If desired, divide mixture into 2 portions; stir 2 drops coloring into 1 portion and remaining 4 drops coloring into second portion.
Shape mixture into 1-inch balls. Dip a 2-inch round cookie stamp or bottom of a glass into powdered sugar. Press each ball to flatten. Let stand, uncovered, 4 hours or until firm. Freeze, if desired.