In a large bowl, mix together butter, peanut butter, and powdered sugar until a thick dough forms. Roll the mixture into balls and place onto a plate.
Place the chocolate chips into a microwave-safe bowl, and heat in the microwave in 30-second intervals, stirring well until it is fully melted and smooth. Stir in the food coloring.
Coat each peanut butter ball in the chocolate and set onto a plate. Decorate with candy eyes and M&Ms. Let sit until it is fully set.