In a small mixing bowl, cream the peanut butter, butter and vanilla. Gradually beat in powdered sugar. Shape into 1 inch balls. Cover and refrigerate for at least 30 minutes. In a microwave safe bowl, melt candy coating and shortening; stir until smooth. Dip peanut butter balls into coating; place on waxed paper. Place M&M's, plain side up, on top. Let stand until set. Use red gel to create bloodshot eyes.
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