HEAT oven to 350°F. Beat butter, sugar, dry pudding mix and egg in large bowl with mixer until blended. Mix remaining ingredients. Gradually add to pudding mixture, beating well after each addition. Shape into ball. Refrigerate 30 min.
PLACE dough between 2 sheets of parchment paper; roll to 1/4-inch thickness. Cut into shapes with 4-inch bear-shaped cookie cutter. Place, 2 inches apart, on greased baking sheets. Reroll scraps and use to cut additional cookies.
BAKE 12 to 14 min. or until slightly firm. Let stand on baking sheets 3 min. Remove to wire racks; cool completely.