I’m sharing my Best Cutout Sugar Cookies and the small secret tool I use to get clean shapes that make decorating simple for kids.

I always thought cutout cookies were kinda boring until I added cream cheese and a splash of vanilla extract. These Cutout Cream Cheese Sugar Cookies are one of the best Christmas cookies ever and they really change the game.
Decorating them with kids is ridiculous fun, but its the texture that surprises you, soft yet sturdy enough to hold big designs. They remind me of those Sugar Cookie Cut Out Cookies and even bring to mind Cream Cheese Roll Out Sugar Cookies from a bakery, only easier.
I wont give away my little stash of tricks here, but you’ll want to try them.
Ingredients

- Butter: Adds richness, tender crumb and helps spread flavor, mostly fat few nutrients.
- Cream cheese: Gives tang, moist texture, some protein and calcium but high in fat.
- Sugar: Sweetens, helps browning and structure, just empty calories mostly carbohydrates.
- Flour: Provides structure, gluten makes chewiness, adds carbs and little fiber.
- Egg: Binds ingredients adds moisture some protein and fat, helps leavening.
- Vanilla: Tiny bit of flavor magic, no nutrition, makes cookies taste more complex.
- Baking powder soda salt: Lift cookies, salt boosts flavor, not much nutrition.
Ingredient Quantities
- 1 cup (226 g) unsalted butter softened, room temp
- 8 oz (226 g) cream cheese softened, room temp
- 1 1/2 cups (300 g) granulated sugar
- 1 large egg, room temp
- 1 teaspoon vanilla extract
- 3 1/2 cups (420 g) all-purpose flour, plus more for rolling
- 1 teaspoon baking powder
- 1/2 teaspoon baking soda
- 1/2 teaspoon fine salt
How to Make this
1. Preheat oven to 350°F (175°C). In a bowl whisk the flour, baking powder, baking soda and salt so it’s evenly mixed.
2. In a large bowl beat 1 cup softened unsalted butter and 8 oz softened cream cheese together until smooth, then add 1 1/2 cups granulated sugar and beat again until light and fluffy.
3. Add 1 large room temp egg and 1 teaspoon vanilla extract, mix just until combined, don’t overbeat or the dough gets too soft.
4. Gradually add the dry ingredients to the wet, mixing on low until a soft dough forms; if it’s sticky chill it, you want it workable not gooey.
5. Wrap dough in plastic or press into a disk, refrigerate at least 1 hour or up to 48 hours; chilling firms the fats so shapes hold while baking.
6. On a lightly floured surface (use extra flour for rolling) roll dough to about 1/4 inch thickness, or place between sheets of parchment to avoid sticking and extra flour.
7. Cut shapes, transfer cookies to a parchment lined baking sheet leaving space between them; for sharper edges freeze the cut shapes 10 to 15 minutes before baking.
8. Bake one sheet in the center of the oven for 8 to 11 minutes, until edges just start to turn golden; don’t overbake, they should stay pale for soft tender cookies.
9. Let cookies cool on the sheet for 5 minutes then move to a wire rack to cool completely before decorating; store in an airtight container, or freeze baked or unbaked dough for later use.
Equipment Needed
1. Oven (preheat to 350°F / 175°C)
2. Electric mixer or stand mixer with paddle attachment (a sturdy hand mixer works fine if you don’t have a stand)
3. Mixing bowls, at least one large and one medium
4. Whisk, rubber spatula and a wooden spoon for scraping and mixing
5. Measuring cups and spoons plus a kitchen scale for the grams
6. Rolling pin and extra flour or parchment sheets for rolling
7. Cookie cutters and a bench scraper or offset spatula to lift shapes
8. Baking sheets lined with parchment paper or silicone mats
9. Wire cooling rack and plastic wrap or an airtight container for chilling and storage
FAQ
Cutout Cream Cheese Sugar Cookies Recipe Substitutions and Variations
- Unsalted butter: If you only have salted butter use the same amount and cut the recipe salt by about 1/4 teaspoon. For a dairy free option swap with solid coconut oil or vegan butter 1:1 but chill the dough longer since those fats are softer and the cookies may spread more.
- Cream cheese: Swap with Neufchatel 1:1 for almost the same texture and a bit less fat. Mascarpone works too 1:1 for a richer softer dough but chill the dough extra so it firms up. Dairy free cream cheese can be used 1:1 but expect a slightly different mouthfeel.
- Granulated sugar: Use light brown sugar 1:1 for a chewier cookie and a touch of caramel flavor, just know the color and flavor change. Superfine sugar can replace granulated 1:1 if you want a smoother creaming result and whiter cookies.
- Egg: For an egg free bind use 1 tablespoon ground flaxseed mixed with 3 tablespoons water, let sit 5 minutes and use in place of 1 egg. You can also use 1/4 cup unsweetened applesauce per egg for moisture but the cookies will be a bit softer.
Pro Tips
1) Let everything hit room temp first — the butter cream cheese and egg. If theyre still cold the dough will fight you, but dont zap them into melting, 10 to 15 seconds at low power usually does the trick.
2) Mix gently once the egg goes in. Overbeating makes the dough too soft and the cookies spread, so stop when it looks just combined. If the dough gets sticky chill it, patience pays off here.
3) Roll between two sheets of parchment to avoid adding too much flour. Too much extra flour makes the cookies dense, and using a bench scraper to lift shapes prevents misshapen cookies.
4) Bake a test sheet first and watch the edges. Ovens vary a lot so timing will change, pull them when edges just start to color, they should stay pretty pale for the right texture.
5) For storage and make ahead: you can freeze cut shapes or the dough itself, but re roll scraps only once, they get tough if you keep reworking them. To keep baked cookies soft store with a slice of bread in the container, it actually works.

Cutout Cream Cheese Sugar Cookies Recipe
I’m sharing my Best Cutout Sugar Cookies and the small secret tool I use to get clean shapes that make decorating simple for kids.
36
servings
144
kcal
Equipment: 1. Oven (preheat to 350°F / 175°C)
2. Electric mixer or stand mixer with paddle attachment (a sturdy hand mixer works fine if you don’t have a stand)
3. Mixing bowls, at least one large and one medium
4. Whisk, rubber spatula and a wooden spoon for scraping and mixing
5. Measuring cups and spoons plus a kitchen scale for the grams
6. Rolling pin and extra flour or parchment sheets for rolling
7. Cookie cutters and a bench scraper or offset spatula to lift shapes
8. Baking sheets lined with parchment paper or silicone mats
9. Wire cooling rack and plastic wrap or an airtight container for chilling and storage
Ingredients
1 cup (226 g) unsalted butter softened, room temp
8 oz (226 g) cream cheese softened, room temp
1 1/2 cups (300 g) granulated sugar
1 large egg, room temp
1 teaspoon vanilla extract
3 1/2 cups (420 g) all-purpose flour, plus more for rolling
1 teaspoon baking powder
1/2 teaspoon baking soda
1/2 teaspoon fine salt
Directions
- Preheat oven to 350°F (175°C). In a bowl whisk the flour, baking powder, baking soda and salt so it's evenly mixed.
- In a large bowl beat 1 cup softened unsalted butter and 8 oz softened cream cheese together until smooth, then add 1 1/2 cups granulated sugar and beat again until light and fluffy.
- Add 1 large room temp egg and 1 teaspoon vanilla extract, mix just until combined, don't overbeat or the dough gets too soft.
- Gradually add the dry ingredients to the wet, mixing on low until a soft dough forms; if it's sticky chill it, you want it workable not gooey.
- Wrap dough in plastic or press into a disk, refrigerate at least 1 hour or up to 48 hours; chilling firms the fats so shapes hold while baking.
- On a lightly floured surface (use extra flour for rolling) roll dough to about 1/4 inch thickness, or place between sheets of parchment to avoid sticking and extra flour.
- Cut shapes, transfer cookies to a parchment lined baking sheet leaving space between them; for sharper edges freeze the cut shapes 10 to 15 minutes before baking.
- Bake one sheet in the center of the oven for 8 to 11 minutes, until edges just start to turn golden; don't overbake, they should stay pale for soft tender cookies.
- Let cookies cool on the sheet for 5 minutes then move to a wire rack to cool completely before decorating; store in an airtight container, or freeze baked or unbaked dough for later use.
Notes
- Below you’ll find my best estimate of this recipe’s nutrition facts. Treat the numbers as a guide rather than a rule—great food should nourish both body and spirit. Figures are approximate, and the website owner assumes no liability for any inaccuracies in this recipe.
Nutrition Facts
- Serving Size: 34g
- Total number of serves: 36
- Calories: 144kcal
- Fat: 7.5g
- Saturated Fat: 4.6g
- Trans Fat: 0.22g
- Polyunsaturated: 0.31g
- Monounsaturated: 1.9g
- Cholesterol: 25mg
- Sodium: 67mg
- Potassium: 20mg
- Carbohydrates: 17.5g
- Fiber: 0.3g
- Sugar: 8.6g
- Protein: 1.7g
- Vitamin A: 182IU
- Vitamin C: 0mg
- Calcium: 9mg
- Iron: 0.5mg









