Line two sheet pans with parchment paper and preheat oven to 350°. In the bowl of a stand mixer fitted with the paddle attachment, beat 1 cup of granulated sugar with butter and vanilla until light and fluffy. Add vanilla extract and egg mixing and scraping down sides of bowl as needed. Carefully add liquid red food coloring and continue mixing and scraping until food coloring is well combined.
In a medium-sized bowl, whisk together flour, cocoa powder, baking powder, salt, and baking soda. Add flour mixture to stand mixer bowl and beat until combined. Stir in mini chocolate chips.
Add remaining ½ cup granulated sugar and 1 cup powdered sugar to two separate small bowls. Scoop cookie dough and roll gently into a ball. Coat in granulated sugar. After all cookie balls are rolled and dipped in granulated sugar, generously coat in powdered sugar and bake 10-12 minutes. Cookie dough should still look wet in between crinkles. Immediately transfer to cooling racks to set completely. Do not overbake, cookies will continue to set as they cool.