Preheat the oven to 350 F. In a large bowl, combine butter with powdered sugar until fluffy. Add in vanilla extract and mix until smooth. Add in the flour and mix until it is fully combined.
Add in cherry juice and fold in dried cherries. Roll the cookie dough into balls and place the cookies onto a large ungreased baking sheet. Bake for 10-12 minutes.
Place the remaining 1/2 cup powdered sugar into a shallow dish. Roll the baked cookies into the powdered sugar.