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, mix until it is fully combined.
Fold in the white chocolate chips and sprinkles. Roll the cookie dough into balls, and place the cookies onto a large ungreased baking sheet. Bake for 10-12 minutes. Place the powdered sugar into a shallow dish. Roll the cookies into the powdered sugar.