6 ounces cream cheese
3-1/2 cups all-purpose flour
3 cups sifted confectioners' sugar
2 eggs
1 teaspoon baking powder
1 teaspoon vanilla
In a medium bowl, beat butter and cream cheese with an electric mixer on medium speed for 30 seconds. Add about half of the flour, the sugar, eggs, baking powder and vanilla. Beat on low until combined. Beat for 1 minute on medium. Beat in remaining flour on low.
Divide dough in half. Cover and chill dough 1 hour or overnight. On a lightly floured surface, roll dough one half at a time to 1/8-inch thickness. Using assorted cookie cutters, cut into desired shapes. Arrange dough cut-outs 1-inch apart on ungreased cookie sheet lined with parchment paper.
Bake at 375 degrees for 8 to 9 minutes, or until edges are set. Cool cookies on a wire rack until cookies are slightly warm. Glaze with colored frosting.