I only ever used powder make up on Xiaoli when he was in her first TPE incarnation. It doesnt have the sheen of lipstick of gloss, but you are guaranteed it wont leech in to the TPE and stain.
As Shamus says, it's a bugger to apply dry though. I found using a foam applicator was best for it as it never 'flicked' when you can to an edge
I used to use baby oil to remove, or mah kisses!
K