Cream the Butter, Cream Cheese & Sugar:

• In a large mixing bowl, beat the butter, cream cheese, and sugar together until light and fluffy (about 2–3 minutes).
• Add the egg and vanilla extract, mixing until well combined.

Mix the Dry Ingredients:

• In a separate bowl, whisk together the flour, baking powder, and salt.
• Gradually add the dry ingredients to the wet mixture, mixing just until the dough comes together.

Chill the Dough:

• Wrap the dough in plastic wrap and refrigerate for at least 1 hour (or up to overnight). This helps the cookies keep their shape when baking.

Roll & Cut the Cookies:

• Preheat your oven to 350°F (175°C) and line baking sheets with parchment paper.
• Lightly flour a clean surface and roll out the chilled dough to about ¼-inch thickness.
• Use cookie cutters to cut out shapes and carefully transfer them to the prepared baking sheets.

Bake the Cookies:

• Bake for 10–12 minutes, or until the edges are lightly golden.
• Let the cookies cool on the baking sheet for 5 minutes before transferring them to a wire rack to cool completely.

Decorate & Enjoy!

• Dust with powdered sugar, sprinkle with festive toppings, or frost with royal icing for a fun and colorful finish!