Preheat the oven to 350 degrees.
Oil and flour a baking pan.
In a large bowl, combine all the dry ingredients: flour, sugar, baking soda, baking powder, & salt.
In a another mixing bowl, add the water & buttermilk powder and stir together with a whisk.
Add the egg and food coloring to the buttermilk mixture.
Next, add the butter to the dry ingredients and cut the butter in with a pastry blender.
Add the wet ingredients to the butter flour mixture and stir to combine (using your hands to mix together & kneading together).
Form the dough into a round ball and place onto the baking sheet.
Cut an "X" on the top of the dough.
Place the pan into the oven and allow the bread to bake 50-55 minutes or until baked through.
Allow the bread to cool before slicing & serving with butter and jelly.