Baking sugar cookies always reminds me of the holidays, but these Cream Cheese Sugar Cookies are perfect for any occasion! The addition of cream cheese gives them an extra soft, melt-in-your-mouth texture with just the right amount of sweetness. I love making these with my family, decorating them with colorful icing and sprinkles. Whether you’re baking for a holiday, a special celebration, or just because, these cookies will become a favorite. Plus, they hold their shape beautifully, making them ideal for fun cookie cutter shapes!

Why You'll Like It
✔️ Soft and Buttery – The cream cheese adds richness and a soft, tender bite.
✔️ Perfect for Decorating – Holds its shape well for fun cookie designs!
✔️ Easy to Make – Simple ingredients with step-by-step instructions.
✔️ Great for Any Occasion – Perfect for holidays, birthdays, or just a fun baking day.
✔️ Delicious Flavor – A hint of vanilla and cream cheese makes these irresistible!
The Recipe
Ingredients:
For the Cookies
- 1 cup unsalted butter, softened
- 3 oz cream cheese, softened
- 1 cup granulated sugar
- 1 large egg
- 1 teaspoon vanilla extract
- 2 ½ cups all-purpose flour
- ½ teaspoon baking powder
- ¼ teaspoon salt
For the Icing
- 2 cups powdered sugar
- 2-3 tablespoons milk
- ½ teaspoon vanilla extract
- Green food coloring (for decoration)
- Green sugar sprinkles (optional)
Step-by-Step Instructions:
1️⃣ Prepare the Dough
- In a large mixing bowl, beat the softened butter, cream cheese, and sugar until light and fluffy.
- Add the egg and vanilla extract, mixing until well combined.
2️⃣ 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 until a smooth dough forms.
3️⃣ Chill the Dough
- Wrap the dough in plastic wrap and refrigerate for at least 1 hour. Chilling helps prevent the cookies from spreading too much during baking.
4️⃣ Roll and Cut the Cookies
- Preheat your oven to 350°F (175°C) and line baking sheets with parchment paper.
- Roll out the chilled dough on a lightly floured surface to about ¼-inch thickness.
- Use cookie cutters to cut the dough into desired shapes.
5️⃣ Bake the Cookies
- Place the cookies on the prepared baking sheet and bake for 8-10 minutes, or until the edges are lightly golden.
- Let the cookies cool completely on a wire rack before decorating.
6️⃣ Prepare the Icing
- In a bowl, whisk together powdered sugar, 2 tablespoons milk, and vanilla extract until smooth.
- If needed, add an extra tablespoon of milk for a thinner consistency.
- Mix in green food coloring until the desired shade is reached.
7️⃣ Decorate and Serve
- Spread the icing over the cooled cookies.
- Sprinkle with green sugar sprinkles or any decorations of your choice.
- Allow the icing to set before serving.
Serving and Storage Tips
- Serving: These cookies are perfect on their own or paired with a glass of milk or hot cocoa.
- Storage: Store in an airtight container at room temperature for up to 5 days or refrigerate for longer freshness.
- Freezing: You can freeze the unbaked dough for up to 3 months. Thaw in the fridge before rolling and cutting.
Helpful Notes
✅ Chill the Dough – This step is key to keeping the cookie shapes intact while baking.
✅ Use Gel Food Coloring – For brighter, more vibrant icing without making it too thin.
✅ Piping Tip – If decorating with detailed designs, transfer the icing to a piping bag for more precision.
✅ Flavor Variations – Try adding almond extract or a hint of lemon zest for a unique twist.
✅ No Cookie Cutters? – Roll the dough into small balls and press them slightly to make simple round cookies.
Frequently Asked Questions
1. Can I make the dough ahead of time?
Yes! You can prepare the dough and keep it in the fridge for up to 3 days before rolling and baking.
2. How do I keep the cookies from spreading?
Chilling the dough is crucial. Also, avoid overmixing the butter and sugar, as too much air can cause spreading.
3. Can I use different icing colors?
Absolutely! Use different food colorings to match any holiday or event.
4. What’s the best way to store decorated cookies?
Let the icing set completely, then layer cookies between parchment paper in an airtight container.
5. Can I use a different type of frosting?
Yes! Royal icing works great if you want a firmer, more detailed decoration.
Final Thoughts
These Cream Cheese Sugar Cookies are the ultimate soft and delicious treat for any occasion! The cream cheese adds a rich, buttery texture that makes them extra special. Whether you’re baking them for a holiday, a special event, or just a cozy baking day, they’re easy to customize and fun to decorate. Try them with different colors, sprinkles, or even a drizzle of chocolate for a unique twist. Enjoy these delightful cookies with your loved ones!

Cream Cheese Sugar Cookies
Ingredients
For the Cookies
- 1 cup unsalted butter softened
- 3 oz cream cheese softened
- 1 cup granulated sugar
- 1 large egg
- 1 teaspoon vanilla extract
- 2 ½ cups all-purpose flour
- ½ teaspoon baking powder
- ¼ teaspoon salt
For the Icing
- 2 cups powdered sugar
- 2-3 tablespoons milk
- ½ teaspoon vanilla extract
- Green food coloring for decoration
- Green sugar sprinkles optional
Instructions
1️⃣ Prepare the Dough
- In a large mixing bowl, beat the softened butter, cream cheese, and sugar until light and fluffy.
- Add the egg and vanilla extract, mixing until well combined.
2️⃣ 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 until a smooth dough forms.
3️⃣ Chill the Dough
- Wrap the dough in plastic wrap and refrigerate for at least 1 hour. Chilling helps prevent the cookies from spreading too much during baking.
4️⃣ Roll and Cut the Cookies
- Preheat your oven to 350°F (175°C) and line baking sheets with parchment paper.
- Roll out the chilled dough on a lightly floured surface to about ¼-inch thickness.
- Use cookie cutters to cut the dough into desired shapes.
5️⃣ Bake the Cookies
- Place the cookies on the prepared baking sheet and bake for 8-10 minutes, or until the edges are lightly golden.
- Let the cookies cool completely on a wire rack before decorating.
6️⃣ Prepare the Icing
- In a bowl, whisk together powdered sugar, 2 tablespoons milk, and vanilla extract until smooth.
- If needed, add an extra tablespoon of milk for a thinner consistency.
- Mix in green food coloring until the desired shade is reached.
7️⃣ Decorate and Serve
- Spread the icing over the cooled cookies.
- Sprinkle with green sugar sprinkles or any decorations of your choice.
- Allow the icing to set before serving.