Using a stand mixer, hand mixer or a rubber spatula, whisk the butter and cream cheese until it’s combined.
Add the sugar, egg and vanilla extract. Mix again to incorporate everything.
Sift the dry ingredients (flour and baking powder) and mix it to form a sticky dough.
If you planning to add colors, divide the dough into four portions and add your choice of food colors into the dough. Mix the color evenly in the cookie dough.
Cover the colored cookie dough into separate clear wraps or zip lock packs and keep in the refrigerator for a minimum of 2 hours.
When you are ready to bake the cookies, place one colored cookie-dough between two sheets of parchment paper. Sprinkle a little flour and roll it lightly to ¼ inch thick. If the dough feels too sticky, place the rolled cookie dough in the fridge for 30 minutes before you cut out the cookies.
Dip the cookie cutter in flour, dust off the excess and cut out the cookies. Place it on a cookie sheet layered with parchment paper. The cookies don’t expand so you can keep the cookies close to one another.
Preheat the oven 375 F and while the oven preheats, keep the cookie sheet in the fridge.
Bake for 10 minutes (please note that depending on the size of the cookies, you will need more or less time)
Place the warm cookies on wire rack and let it cool completely before you store it in an airtight jar.