Set out all of your ingredients before you begin so everything is ready to go.
Add the Jello powder and powdered sugar to a medium bowl, then mix them together until evenly blended.
Place the butter in a small pan and warm it over low heat just until melted. Remove it from the heat and let it cool for a minute or two.
Pour the melted butter into the bowl with the dry ingredients. Add the vanilla and water, then stir until the mixture comes together into a smooth, thick candy dough.
Portion the mixture into small pieces and roll or press them into little rounds, balls, or flat discs. Arrange them on a baking sheet or tray lined with parchment paper.
Transfer the tray to the refrigerator and let the candies chill for about 1 hour, or until they feel firm and set.