Cream Cheese Sugar Cookies

These Cream Cheese Sugar Cookies are a family holiday tradition at our house. The rich, creamy dough makes wonderfully soft cutout cookies that are just as much fun to bake and decorate as they are to eat. Sprinkle them with colorful sugar crystals before baking, or let them cool and decorate with your favorite frosting. Either way, they make a sweet holiday project for kids of all ages and are perfect for sharing with family, friends, and neighbors.

Easy Cream Cheese Sugar Cookies Recipe

These Cream Cheese Sugar Cookies are so special, I knew they belonged in my cookbook. I wanted this family favorite in print so my children, and their children someday, could have the recipe to make and share with their own families.

There’s just something special about passing along a beloved recipe, especially one that has found its way onto our holiday table year after year. These cookies are made for rolling, cutting, decorating, and sharing, making them the kind of Christmas tradition that’s meant to be passed down.

So, Merry Christmas from my sugar-filled cookie kitchen to yours. I hope these Cream Cheese Sugar Cookies find their way onto your holiday table and become a tradition in your family, too.

Key ingredients to make Cream Cheese Cutout Sugar Cookies: (Scroll down for the full printable recipe card and quantities.)

• Flour – All purpose flour sifted with salt and ground nutmeg forms the base of the sugar cookie dough.
• Butter – You can use salted or unsalted butter.
• Cream Cheese – Full fat cream cheese gives the dough its signature flavor.
• Flavorings – Vanilla extract and almond extract.
• Sugar – Granulated sugar for sweetness. These are sugar cookies, afterall.
• Eggs – Large egg yolk for richness.
• Decorations – Frosting, sprinkles and seasonal nonpareils for decorating.

How to Make Cream Cheese Sugar Cookies Recipe

• Dry Ingredients – Use a whisk to sift together the flour, salt and nutmeg. Set aside.
• Creamed Ingredients – Cream together the softened butter, cream cheese, vanilla and almond extract.
• Granulated Sugar – Add the sugar. Beat until fully combined.
• Add Egg Yolks – Add the egg yolks one at a time beating well after each addition. Beat for 2 minutes on high. The creamed mixture should be fluffy and light yellow in color.
• Combine – Gradually add the flour mixture to the wet ingredients mixing on low speed until combined.
• Chill the Dough – Divide the dough in half and shape into a disc. Wrap in plastic wrap and chill until firm.
• Make Cut-Out Shapes – On a lightly floured surface, roll dough to 1/3-inch thickness. Cut into desired shapes using floured cookie cutters. Place parchment lined cookie sheets.
• Oven – Bake per the recipe until the edges are lightly golden brown. Cool completely on a wire rack then frost.

Kitchen Equipment to Make Cut Out Cream Cheese Sugar Cookies

• Electric mixer. You can use a stand mixer or a hand mixer.
• Measuring cups and measuring spoons.
• Balloon whisk.
• Cookie sheets.
• Wire rack.
• Variety of Christmas cookie shapes and cookie cutters.

Recipe Variations, Tips and Substitutions

• Secret Ingredient – The secret ingredient in my sugar cookies is nutmeg. It’s undetectable, but give the cookies a hint of warm spiced flavor.
• Sugar Cookie Frosting – You can use cream cheese frosting on these cookies or a simple glaze made with heavy cream and confectioners sugar.
• Citrus – You could add one teaspoon lemon extract in place of almond extract for a hint of citrus.
• Dough–Chilling – The butter and cream cheese have to be softened to fully combine with the dry ingredients. It’s important to chill the cookie dough so it, along with the cream cheese, can firm again. This will prevent the cookies from spreading too much while baking.
• If Using Royal Icing – Begin this step making sure your bowl and beaters are completely free of grease. Also, depending on the climate where you live, you may need to add more or less warm water. It’s imperative that you beat the royal icing until it reaches the proper consistency. I use a ratio of 2:1 (2 cups) powdered sugar to (1 Tablespoon) meringue powder. You can easily scale this recipe to suit the amount you need. See the Cook’s Notes for the full instructions.
• Use Festive Cream Cheese Sugar Cookie Dough for any Occasion – You can make these cookies into festive shapes for any occasion. Cut them into hearts for Valentine’s day, bunnies or flowers shapes for Spring or Thanksgiving pumpkins. You can also cut this delicious sugar cookie dough into ghosts, spiders or jack-o-lanterns for Halloween.

Storage and Leftovers

• When to Serve Sugar Cookies – There’s no wrong time of year for sugar cookies. Serve them for Christmas, Easter, 4th of July, picnics, game day desserts or any special occasion.
• Make-Ahead Tip – You can make the cookie dough, wrap it in plastic wrap and chill in the fridge one day in advance. Set up a decorating station and let the family all frost the cookies and decorate their own to suit their fancy.
• Leftovers – Store Cutout Cream Cheese Sugar Cookies in an airtight container at room temperature for up to one week. Place wax paper between layers, if stacking.
• Freezer – You can freeze this cookie dough for up to 3 months. Thaw in the refrigerator prior to using. You can also freeze frosted cookies for up to 2 months. Thaw and enjoy!

More Cookie Recipes to Make

I realize that most people tend to bake around the holidays, but, I’m a year-round baker. It has been a tradition at our house since my boys were tiny, that I bake on Fridays. Cookies rank high on the list for requests. More cookie recipes you may also like to try:

• Gingerbread Cookies are edible art for the whole family.
• Kitchen Sink Cookies are filled to the brim with goodies.
• Snowball Cookies have one thousand names and each one spells delicious.
• Buttery homemade Pecan Cookies.
• Chocolate Dipped Pecan Lace Cookies are delicately delicious.
• Cranberry Walnut Chocolate Chip Cookies feature fresh cranberries.
• Stained Glass Cookies from that Skinny Chicken Can Bake.

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Helpful Kitchen Items:

• Mixing Bowls
• Baking Sheets
• Measuring Set
• Mixer