In a mixing bowl stir together peanut butter and butter. Gradually add powdered sugar, stirring until combined. Shape into 1-inch balls; place on parchment or waxed paper. Let stand about 20 minutes or until dry.
In a small saucepan melt candy coating over low heat, stirring constantly. Dip balls, one at a time, into coating. Let excess coating drip off peanut butter balls. Place on parchment or waxed paper. Immediately press a candy-coated chocolate piece into center of each peanut butter ball. Let stand until coating is firm. Add a dot of black gel to the center of candy pieces for pupils. Drizzle red gel onto balls for bloodshot eyes. Makes about 20 eyeballs.