Infused with rich cream cheese and plenty of butter, these are the Cut Out Sugar Cookies that will make you famous! Perfectly soft and chewy, they melt-in-your-mouth, hold their shape, and will disappear as fast as you can make them! Kissed with a lovely touch of vanilla, these cut out Christmas cookies are sure become a wildly popular family tradition at your home!

Four Christmas tree cut out sugar cookies with Santa spatula.
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Cut Out Sugar Cookies

Are you searching for the perfect cut out cookie recipe? Well guess what… you just found them! This perfectly soft cut out sugar cookies recipe creates the ultimate cutout cookie!

So audaciously rich and sweet… they have this uncanny knack of disappearing as fast as you can make them!

Beth writes: "These are the BEST!!! They're the only kind of cookies I make - they melt in your mouth!!"

These soft sugar cookies are an absolute must-have at the holidays! Whether you’re looking to bake up some fun Christmas cut out sugar cookies with your kids, or just want an easy cookie cutter recipe for other times of the year, these wildly delicious cookies are sure to become your go-to treat!

It’s all thanks to the secret ingredient: Cream Cheese! This ensures you’ll get chewy, tender, melt in your mouth sugar cookie perfection… every time! Yes, they really are that good!

The flavor is truly off the charts. Plus, the dough is a breeze to work with.

Then… after you bake up your lovely soft sugar cookies, go ahead and frost them up with this heavenly Cream Cheese Buttercream Frosting! You can even tint the frosting with food coloring or gels to make all sorts of gorgeous colors for your cookie decorating!

Or if you’re craving chocolate, this Chocolate Buttercream Frosting Recipe is the ONLY way to go! It’s truly out of this world amazing!

Of course the most important thing to remember whenever baking Christmas cookies… is to ALWAYS make as many Christmas cookies as possible! That’s why you definitely need to make these adorable Gingerbread Man Cookies, these heavenly Peanut Butter Kiss Cookies, and these wildly popular Peppermint Chip Cookies, too!

So are you ready to get baking?

Here’s what you’ll need to make the absolute best cut out sugar cookies for decorating…

Star cookie cutter cutting out dough.

Yes… after making your cut out cookie dough, you’ll want to transfer it to the refrigerator and let it chill overnight, or at least a minimum of 8 hours.

And if you want to make your cookie dough in advance, you can make it up ahead of time and store it up to 3 days in the refrigerator prior to baking.

It’s simple!

After making your cookie dough, just divide it into 3 portions, flatten into discs, wrap each portion in plastic wrap, then transfer to the refrigerator.

Dough wrapped in plastic wrap.

Should I Refrigerate Sugar Cookies After Baking?

Yes… you’ll want to store any leftover unfrosted and frosted sugar cookies for cutouts covered, in an airtight container, in the refrigerator for up to 4 days.

Cream cheese sugar cookie ingredients including vanilla, baking powder, and butter.

Ingredients

It takes just a few simple ingredients to make the BEST cut out sugar cookie recipe in the world!

If you don’t already have everything on hand, just add these Christmas sugar cookies recipe ingredients to your grocery list so you can score some Sam’s Club Deals

  • Flour
  • Sugar
  • Butter
  • Philadelphia Cream Cheese
  • Egg
  • Vanilla Extract
  • Almond Extract
  • Baking Powder
  • Salt
  • Powdered Sugar (for rolling)

Trust me, if you want a stress-free Christmas, easy Christmas dessert recipes like this are a great place to start!

Disc of cookie dough with a rolling pin.

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How to Make Cut Out Sugar Cookies

It’s actually so easy to make the most amazing soft sugar cookies from scratch!

Here’s what you’ll do…

1. Start by mixing up your dough.

2. Once dough is mixed, chill your dough in the refrigerator.

Cookie dough with stars cut out of it.

3. Once chilled, remove the dough and roll it out.

4. Cut out your shapes using your favorite cookie cutters.

Cookie dough of various shapes on a lined baking sheet.

5. Then bake your cream cheese cookies per the instructions in the recipe card below.

6. Allow the cookies to cool on racks before decorating.

7. Once cooled, frost your cookies, then decorate with store-bought colored sprinkles or my homemade sprinkles.

Elf on a wire rack with Christmas tree cookies.

Now comes the fun part… grabbing that first cookie and DEVOURING it!

If you happen to have any cookies leftover, these custom cut out cookies are perfect for gift giving and for your Christmas cookie exchange!

Scroll down for the printable recipe card with detailed, step-by-step instructions.

How to Decorate

When it comes time to decorate, gather the gang and make it a party!

You won’t just be making frosted cut out cookies… you’ll be making sweet memories to cherish for years to come!

Green Christmas tree cookies with a Santa spatula.

Decorating sugar cookies is one holiday tradition that just can’t be skipped at my house.

From baking to decorating, my entire family gets involved and has so much fun year after year!

Cookie decorated with frosting to look like a Christmas tree.

We always make sure to create some extra silly ones to give to each other, too! With teen guys and a funny hubby, the designs have been hilarious and bizarre over the years!

When Bigfoot, leg lamps, and giant feet are your templates, things are bound to get crazy.

What can I say… I’m the only girl in the house, and I am definitely outnumbered!

If you love decorating cookies, too… you’ll really love these classic cream cheese cut out sugar cookies! Just trust me… they’re the one cookie recipe you NEED to try this year! Wayne (pictured below) agrees!

Cookie in the shape of an animal.

What Your Frugal Friends Are Saying About This Easy Cream Cheese Sugar Cookies Recipe…

Mindy writes: “Fabulous”

Beth writes: “These are the BEST!!! They’re the only kind of cookies I make – they melt in your mouth!!”

Darcy writes: “Best recipe for sugar cookies!”

Cindy writes: “So yummy!!”

Jean writes: “Made these this weekend and loved them! Thank you!”

Kim writes: “I love these!!”

Annie writes: “We have used this recipe, it so much better than regular sugar cookies.”

More Easy Christmas Cookies


Did You Enjoy This Recipe? ⭐️⭐️⭐️⭐️⭐️ Leave a comment & review below!

Cut Out Sugar Cookies

Infused with rich cream cheese and plenty of butter, these are the Cut Out Sugar Cookies that will make you famous! Perfectly soft and chewy, they melt-in-your-mouth, hold their shape, and will disappear as fast as you can make them! Kissed with a lovely touch of vanilla, these cut out Christmas cookies are sure become a wildly popular family tradition at your home!
Servings: 4 dozen
Four cut out sugar cookies decorated with royal icing and spatula.
Prep Time: 30 minutes
Cook Time: 10 minutes
Total Time: 40 minutes
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Ingredients 

  • 1 2/3 cups Granulated Sugar, (white sugar)
  • 1 cup Unsalted Butter, softened (use high quality butter)
  • 8 oz Cream Cheese brick, (softened)
  • 1 large Egg
  • 1 tsp Vanilla Extract
  • 1/2 tsp Almond Extract
  • 3 1/2 cups All-Purpose Flour
  • 1 tsp Baking Powder
  • 1/2 tsp Salt
  • 1/2 cup Powdered Sugar, (for rolling and cutting out cookies)

Instructions 

  • Gather your ingredients.
    Cream cheese sugar cookie ingredients including vanilla, baking powder, and butter.
  • In large bowl, combine Sugar, softened Butter, softened Cream Cheese, Egg, Vanilla Extract and Almond Extract, and beat with mixer until well combined.
  • In separate bowl, combine Flour, Baking Powder, and Salt, and whisk ingredients together.
  • Gradually pour flour mixture into Butter/Cream Cheese mixture, and continue mixing until all has been well combined.
  • Divide dough into 3 portions, flatten into discs, wrap each portion in plastic wrap, then transfer to the refrigerator. Allow dough to chill overnight, or at least a minimum of 8 hours.
    Dough wrapped in plastic wrap.
  • When you're ready to bake your cookies, preheat oven to 375 degrees.
  • Generously coat a large cutting board with powdered sugar, and remove 1 portion of dough from the refrigerator at a time. Sprinkle the top and bottom of the dough with additional powdered sugar, and generously cover your rolling pin with powdered sugar.
    Disc of cookie dough with a rolling pin.
  • Roll dough out to 1/8" thickness, then cut out shapes using cookie cutters, and carefully transfer to parchment paper lined cookie sheet.
    Star cookie cutter cutting out dough.
  • As the dough warms up, it will become more sticky, so work quickly and wrap up any leftover scraps in plastic wrap, and store them in the refrigerator.
  • Bake 9 – 12 minutes, or until cookies are done and edges begin turning golden brown. (bake times will vary based upon thickness, types of cookie sheets being used, ovens, and elevation) Once done, remove from oven, and allow to cool for a few minutes on the cookie sheet, then transfer to wire racks to finish cooling.
    Elf on a wire rack with Christmas tree cookies.
  • Continue rolling and baking cookies, 1 small portion of dough at a time, generously coating your cutting board and rolling pin with powdered sugar as you go, until all of the dough has been used up.
  • Once cookies have cooled completely, have fun icing, frosting, decorating, and eating. YUM!
    Christmas tree cut out cookies with green frosting next to a santa spatula.

Notes

  • *Rolling with Flour or Sugar: You could also roll out on flour, but when you roll out on powdered sugar your cookies will stay perfectly sweet.
  • Storage Tip: Store leftover unfrosted and frosted cookies covered, in an airtight container in the refrigerator for up to 4 days.
  • Prep Ahead Tip: Dough can be made ahead of time and stored up to 3 days in the refrigerator prior to baking.
  • Freezer Tip: Baked sugar cookies that have not yet been frosted can be frozen in a freezer safe container up to 1 month.  If stacking cookies in the container, place a sheet of parchment paper between each layer.
  • FAQ’s: For answers to Frequently Asked Questions or tips for common substitutions and variations, please refer to the detailed information above this recipe card.
iconLike this recipe? Rate & comment below!

About Heidi Miller

Heidi Miller is the creator of The Frugal Girls, where she shares easy recipes with massive flavor! She has been creating and sharing recipes online for over 15 years, and brings warmth, expertise, and a personal touch to every recipe. Her work has been featured on Today.com, NBC, Fox, Parade, People, Country Living, Woman’s World, and more!

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48 Comments

  1. Healthy World Cuisine says:

    Cut out cookies has always been one of our family traditions. However, we have to try your recipe with the addition of cream cheese. Love a soft and chewy cookie.

    1. Heidi says:

      Oh yes… I hope you love them! The cream cheese really does upgrade the softness of these cookies!

  2. Irma says:

    These cookies look really delicious.
    To be honest I never bake, but this invites you to give it a try.
    Greetings Irma

    1. Heidi says:

      Thank you, Irma… they really are so tasty. 🙂

  3. Michelle says:

    These cookies look so festive! Getting into that holiday spirit!

    1. Heidi says:

      Thanks, Michelle! I can’t believe how fast this year has flown by… the holidays will be here before we know it!

  4. Val says:

    Yummy! I have never worked cream cheese into a cookie dough before. These are definitely peaking my interest! Cookies are so fun to cut out.

    1. Heidi says:

      Thanks, Val, and I agree… making cut out cookies is always fun! The cream cheese does make the dough a bit stickier than traditional sugar cookie dough, but with refrigeration it works out just fine, and the flavor upgrade is definitely worth it. 🙂

  5. Caleb - Never Ending Journeys says:

    Such a fun way to make Christmas cookies – I never thought to try this.

    1. Heidi says:

      Thank you… the cream cheese really will take your cut out cookies to the next level!

  6. Christie says:

    These are so festive and are such a great idea! I love sugar cookies and I need to try them with cream cheese.

    1. Heidi says:

      Ooh yes… definitely! The cream cheese really does add such a softness and delicious flavor to the cookies!

  7. Her Digital Coffee says:

    I’ll definitely have to make these this year! I love sugar cookies. I like the snowman cookies too! Thanks for sharing!

    1. Heidi says:

      You’re very welcome! Have fun with your holiday baking this year!

  8. Christine says:

    Thanks so much!

    1. Heidi says:

      You’re very welcome, Christine!

  9. Black Knight says:

    Those cookies look delicious.
    I will forward the recipe to my wife.
    Thanks for sharing.

    1. Heidi says:

      Thank you so much… I hope you both love them! 🙂

  10. jacre says:

    une belle panoplie de biscuits, ils doivent ĂŞtre bien bon…bises et bonne soirĂ©e

    1. Heidi says:

      Merci beacoup, Jacre. 🙂 Bonne journée