In a large bowl, beat butter, cream cheese and confectioners' sugar until blended. Beat in egg, lemon zest, vanilla and food coloring. In another bowl, whisk flour, baking powder and salt; gradually beat into creamed mixture.

Divide dough in half; shape each into a 7-1/2-inches-long roll. Roll in chopped pistachios. Wrap and refrigerate 2 hours or until firm.

Preheat oven to 375°. Unwrap and cut crosswise into 1/4-inch slices. Place 1 in. apart on ungreased baking sheets. Press a whole pistachio into the center of each cookie.

Bake 7-9 minutes or until edges are lightly browned. Remove from pans to wire racks to cool.