Step 1

Sift flour and baking powder into a bowl. Add salt and set aside.

Step 2

Into a bowl of a stand mixer fitted with the paddle attachment, beat butter and sugar on medium speed until well combined, about 3 minutes. Add cream cheese and until well combined. Scrape down the side of the bowl as needed. Add vanilla and beat until well combined.

Step 3

Reduce speed to low and add flour mixture and beat just until incorporated and the dough starts to come together.

Step 4

Scrape the dough onto a lightly floured work surface and divide it in half. Shape each half into a disk, then wrap each disk in plastic wrap and refrigerate for 2 hours.

Step 5

Preheat oven to 350º F. Line two baking sheets with parchment paper.

Step 6

Over a big piece of parchment paper, or on a lightly floured surface roll out the dough disk about 1/4-inch thick. Cut into desired shapes, place at least 1-inch apart on the prepared baking sheet. Refrigerate for 15 minutes.

Step 7

Gather up the dough scraps and form into a disk, wrap, and refrigerate for 15-20 minutes. Then roll out and cut again. Repeat step 6.

Step 8

Bake for 10 - 15 minutes or until cookies are just beginning to turn brown around the edges. Remove from the oven and let them sit on the baking sheet for 2 minutes. Then move to complete cooling on wire rack.

Step 9

Serve as is or decorate with royal icing as desired.

Step 10

Store in an airtight container for up to 1 week.