In a large bowl, cream together the butter, white sugar and brown sugar until smooth. Beat in the eggs one at a time, then stir in the vanilla. Combine the flour, baking powder and instant pudding mix; stir into the creamed mixture. Fold in the peanut butter chips. Drop by rounded spoonfuls onto ungreased cookie sheets.
Bake for 8 to 10 minutes in the preheated oven. Allow cookies to cool on baking sheet for 5 minutes before removing to a wire rack to cool completely.