Use gel (paste) food colours. Don't use liquid colours because they make the sugar paste sticky and hard to work with.
I usually use Wilton and Sugarflair brands. But there's many other good ones out there. If you are not sure which brands to choose, go through online reviews.
TIPS
If you are coloring a large amount of sugar paste, first color a small piece. Then add it to the whole amount. That way you won't over-knead the paste. An over-kneaded paste is very soft, sticky and hard to work with.
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