Preheat oven to 325 degrees F (165 degrees C). Grease cookie sheets.
Sift together the flour, baking powder and salt, set aside.
In a medium bowl, cream together the butter, cream cheese, and sugar until smooth. Stir in the vanilla, then gradually beat in the dry ingredients.
Divide the coconut into three separate containers. Color one portion red, one yellow, and leave one plain. Toss the colored coconut together with the plain.
Roll cookie dough into walnut sized balls, roll the balls in the coconut mixture, then place them 2 inches apart onto the prepared cookie sheet. Press 1 candy into the center of each cookie.
Bake for 12 minutes in the preheated oven, then remove from the oven and press 2 more candies into the center of each cookie. Return to the oven to continue baking for another 4 to 5 minutes, until golden brown.
Cool cookies on the baking sheet for a few minutes before removing to a wire rack to cool completely.