In a large bowl add 1 cup unsalted softened butter, 1/4 cup room temperature cream cheese, and 1 cup granulated sugar. Use an electric hand mixer and beat that on high speed until it’s well-creamed together. This should take about 2-3 minutes.
Sift the dry ingredients in, then mix one last time.
Form the dough into a disk and wrap it in plastic wrap. Refrigerate for about 1 to 2 hours or until it firms up.
Once the dough has firmed up in the refrigerator, place it on a sheet of parchment paper. Then place another sheet of parchment paper on top.
Use a rolling pin to roll out the dough to 1/4 inch thick. Then use a 2 1/2 inch cookie cutter or glass cup to cut out circles. Roll up the scraps and repeat this again
The dough will still be very soft so be gentle when lifting each cookie. Transfer the shaped cookies onto a baking sheet lined with parchment paper. Then bake at 350 degrees Fahrenheit for 6-8 minutes.
Meanwhile make the sugar cookie frosting. In a large bowl, beat 1 cup of softened unsalted butter using an electric hand mixer.
Then add 1 tsp vanilla extract, 4 1/2 cups powder sugar, 1 tbsp milk, and 1/4 tsp salt. Mix well until everything is combined. At this point, you can add your choice of food coloring or leave it as it is.
Once the cookies are fully cooled down you can frost them and add your favorite sprinkles on top.
Don't use cold butter or cream cheese- In order for these cookies to be moist and fluffy, the butter and cream cheese need to be softened and at room temperature. Otherwise, they won't completely combine with the other ingredients.
Chill the dough- It's important for the dough to be cold when you roll, cut, and bake these. This keeps them thick and from spreading too much while they bake.
Cool them before frosting- This buttercream frosting will melt if the cookies are too warm, so let them cool all the way before decorating.