Preheat oven to 350 degrees. Line 2 large baking pans with parchment paper.
In a large mixing bowl, beat softened butter, peanut butter, and butter together using an electric hand mixer for 2 minutes until creamy & smooth. Beat in vanilla and flour until combined. Using a spatula mix in chocolate chips.
Scoop out cookie dough using a 1 inch cookie scoop (2 TBS) and roll dough in your hands to form a ball shape. Place onto parchment lined baking pan. Make the dough balls are 1 inch apart.
Bake in preheated oven for 18-20 minutes until golden brown on edges. Remove from oven and allow to rest on baking pan for 5-7 minutes. These cookies are fragile until cooled, so be careful.
Pour powdered sugar into a narrow dish. Place cookies in a few at a time. Using a spoon, cover cookie with powdered sugar carefully. Dust off excess and place cookie on a cool baking pan lined with parchment.
Once all cookies have been covered with powdered sugar, cover them once more with powdered sugar and place them back on pan. Allow snowballs to completely cool to set up.
Store up to 1 week in an airtight container. These do freeze well also longer.