LINE baking sheet with wax paper.
PLACE 1/2 cup powdered sugar in large bowl. Add peanut butter. Top with additional 1 cup powdered sugar. Use remaining powdered sugar to coat hands, then “squish” peanut butter and powdered sugar until combined. Form into 1 1/2-inch balls; place on prepared baking sheet. Press a strawberry into each ball.
PLACE semi-sweet and butterscotch morsels into separate heavy-duty plastic bags. Microwave separately on MEDIUM-HIGH (70%) power for 1 minute; knead. Microwave at additional 10- to 15-second intervals, kneading until smooth. Cut tiny corner from bags; squeeze to drizzle over cookies. Refrigerate until drizzle is set.