Step 1

Preheat the oven to 350°F (177°C). Line two large baking sheets with parchment paper or silicone baking mats and set aside.

Step 2

In a mixing bowl, whisk together the flour, baking powder, and salt. Set aside.

Step 3

In a large mixing bowl using an electric mixer, cream together the shortening and sugar until well combined. Mix in the egg, milk, and vanilla extract until fully combined.

Step 4

Slowly add the dry ingredients and mix until just combined.

Step 5

Divide the dough in half. Roll out each half on a lightly floured surface to ¼-inch thickness for crisp cookies or ⅜-inch thickness for softer cookies. Cut with 2 to 3-inch cookie cutters. Place 2 inches apart on baking sheet. Re-roll any scrap pieces of sugar cookie dough and cut out more cookies as needed.

Step 6

Bake in separate batches at 350° for 8 to 13 minutes, or until the tops of the cookies are set and lightly browned. Baking time will vary based on how thick you roll the cookie dough and the size of your cookie cutter.

Step 7

Cool on the baking sheet for 5 to 10 minutes, then transfer to a wire rack to finish cooling.

Step 8

Beat the cream cheese and shortening until well combined, then mix in the powdered sugar and vanilla until fully combined.

Step 9

Frost the cooled sugar cookies and top with sprinkles if desired.