Hi Michelle:-) This doesn't sound quite like the recipe you are looking for - just close since it calls for honey rather than confectioner's sugar. Also, the suggestions for decorating them are different than the ones you remember. Even so, maybe this will work for you if no one else posts the recipe you want. I found this recipe on the internet so have not tried it.

PEANUT BUTTER TEDDY BEARS
Yield: 8 bears

1 cup smooth peanut butter
1/4 cup honey
1/2 cup instant nonfat powdered milk
toothpick
green food coloring

In small mixing bowl, combine peanut butter, honey, and powdered milk. (If mixture is too sticky, add more powdered milk.)

Break off marble-sized piece of mixture and roll into a ball for bear's head. Roll another ball about twice that size for his body and attach to head. Roll out 6 tiny balls and pinch flat. Attach to head for ears and body for arms and legs.

Dip blunt end of toothpick into food coloring and paint on eyes, nose, mouth, and coat buttons.
Place bear on wax paper-lined foil tray or pie pan until set.

You should be able to make 7 or 8 bears from one batch.