1. In a bowl combine confectioner's sugar, vanilla and water, mix thoroughly.
2. Add water as needed to get a spreading consistency.
3. Once done divide into 3 parts.
4. Color one part with green food coloring, second with red food coloring, leave the third one white.
5. Spread the icing on the Christmas cookies as desired.
6. Let each individual color of icing set up before applying a different color.
7. Place the cookies on wax paper and allow it to dry.