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