Cream cheese sugar cookies are a soft, tender, and flavorful twist on classic sugar cookies. The cream cheese gives the dough a subtle tang and helps create a melt-in-your-mouth texture that makes these cookies perfect for decorating, gifting, and serving on holiday cookie trays.
If you enjoy sugar cookies that stay soft instead of turning crisp, this recipe is a wonderful choice. The dough rolls out beautifully after chilling, holds its shape well when cut with cookie cutters, and bakes into cookies with lightly golden edges and a chewy, delicate center.
This cream cheese sugar cookie dough is especially useful for Christmas cut-out cookies, but it is versatile enough for birthdays, parties, and everyday baking. Decorate the cooled cookies with easy royal icing, sanding sugar, sprinkles, or your favorite cookie decorations.

Whether you bake often or are just getting comfortable in the kitchen, these homemade cream cheese sugar cookies are simple to prepare. The ingredients are basic, the method is straightforward, and the results are festive, buttery, and delicious.
These cookies are a lovely addition to Christmas cookie platters because they are easy to customize with different cookie cutter shapes and icing colors. Use red and green icing for the holidays, pastel shades for spring, or classic white icing with sanding sugar for a simple, elegant finish.

Why You’ll Love This Recipe
- Rich Flavor: Cream cheese adds a gentle tang and gives these sugar cookies a deeper flavor without making them overly sweet.
- Soft Texture: These cookies bake up tender, chewy, and soft, making them ideal for anyone who prefers a melt-in-your-mouth sugar cookie.
- Simple Ingredients: The recipe uses familiar baking staples such as butter, sugar, flour, cream cheese, vanilla, and an egg.
- Great for Decorating: The chilled dough rolls and cuts well, making it perfect for Christmas cookie cutters and festive icing designs.
- Make-Ahead Friendly: The cookies can be baked ahead and frozen, which is helpful during busy holiday baking seasons.

Ingredients in Cream Cheese Sugar Cookies
The ingredients for these cream cheese sugar cookies are simple and easy to find. For the best texture, make sure the butter and cream cheese are softened before mixing the dough.
- Unsalted butter, softened to room temperature
- Granulated sugar
- Cream cheese, softened to room temperature
- Vanilla extract
- Large egg
- All-purpose flour, spooned and leveled
- Salt
Ingredients in Royal Icing
This easy royal icing comes together quickly and gives the cookies a smooth, sweet finish. Add food coloring if you want to create festive designs.
- Powdered sugar
- Milk
- Light corn syrup
- Vanilla extract

How to Make Sugar Cookies with Cream Cheese
In a large mixing bowl, beat the softened butter and granulated sugar together until the mixture is smooth and well combined.
Add the softened cream cheese and continue beating until the mixture looks light and fluffy. This step helps create the soft texture that makes these cream cheese sugar cookies so good.
Mix in the vanilla extract, then beat in the egg until fully incorporated.
In a separate medium bowl, whisk together the all-purpose flour and salt. Add the flour mixture to the wet ingredients and mix on low speed until a soft dough forms. Scrape down the sides of the bowl as needed so everything combines evenly.
Divide the dough into two portions. Shape each portion into a disc, flatten slightly, and wrap with plastic wrap or parchment paper. Chill the dough for about 2 hours. Chilling is important because it helps the cookies hold their shape while baking.
Preheat the oven to 375ºF. Line a cookie sheet with parchment paper.
On a lightly floured surface, roll the chilled dough to about ¼ inch thickness. Cut the dough with your desired cookie cutters and place the cookies on the prepared baking sheet.
Bake one sheet at a time for 8 to 10 minutes, or until the edges are just beginning to turn golden brown. Avoid overbaking if you want the cookies to stay soft.
Let the cookies cool on the baking sheet for a few minutes, then transfer them to a wire rack to cool completely before decorating.
How to Make Easy Royal Icing
To make the icing, combine the milk and light corn syrup in a small bowl. Stir until smooth.
Gradually mix in the powdered sugar to help prevent lumps. Add the vanilla extract and continue mixing until the icing is smooth and spreadable.
If you want different colors, divide the icing into small bowls and add food coloring as desired. Use piping bags, small spatulas, or cookie decorating tools to decorate the cooled cookies.
Add festive sprinkles or sanding sugar while the icing is still wet so they stick properly. Allow the icing to harden completely before stacking or storing the cookies.
Hint: Icing bags and small decorating tools make it easier to outline shapes, fill cookies, and add detailed designs.
Substitutions In Cream Cheese Sugar Cookies
Egg: If you need to make the recipe without an egg, use ¼ cup of unsweetened applesauce or a flax egg as a binder. The dough needs a binder to hold the cookies together.
Vanilla: If you do not have vanilla extract, use an equal amount of almond extract for a different flavor. You can also add a small amount of almond extract alongside the vanilla for a subtle nutty note.
Flour: These cookies are made with all-purpose flour. A gluten-free measure-for-measure flour blend may be used if you need a gluten-free version.
Butter: Salted butter can be used in place of unsalted butter. If using salted butter, leave out the added salt in the cookie dough.

Storing Sugar Cookies
Before storing these cream cheese sugar cookies, allow them to cool completely. If the cookies are decorated with icing, wait until the icing is fully set. Depending on how thick the icing is, this can take 2 to 3 hours.
For short-term storage:
- Place the cookies in an airtight container to help keep them soft and chewy.
- If the cookies are decorated with cream cheese frosting or buttercream frosting, store them in the refrigerator to maintain freshness.
- If stacking decorated cookies, make sure the icing has hardened completely and place parchment paper between the layers to prevent sticking.
For long-term storage:
Start with completely cooled cookies. If the cookies are decorated, make sure the icing has fully hardened before freezing.
- Wrap individual cookies in plastic wrap, then place them in a freezer bag or airtight freezer-safe container.
- If the cookies are frosted or iced, flash-freeze them on a baking sheet first so the decoration does not smudge when wrapped.
When ready to serve frozen cookies, set them out at room temperature until thawed. Freezing cream cheese sugar cookies is a helpful way to get ahead on Christmas and holiday baking.
Frequently Asked Questions
How can I make cream cheese sugar cookies that don’t spread during baking?
How do you make drop-style cream cheese sugar cookies?
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📖 Recipe

Homemade Cream Cheese Sugar Cookies
Dana
Equipment
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Hand mixer
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Cookie cutters
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Parchment paper
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Cookie sheet
Ingredients
Cream Cheese Sugar Cookies
- 1 cup unsalted butter – softened
- 1 cup granulated sugar
- 3 ounces cream cheese – softened
- 1 teaspoon vanilla extract
- 1 egg
- 2 ½ cups all-purpose flour
- ¼ teaspoon salt
Royal Icing
- 1 ½ cups powdered sugar
- 2 Tablespoons milk
- 1 Tablespoon light corn syrup
- 1 teaspoon vanilla extract
Instructions
Cream Cheese Sugar Cookies
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In a large bowl, beat the butter and granulated sugar together until well combined.
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Beat in the cream cheese until the mixture is light and fluffy.
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Mix in the vanilla extract, then beat in the egg.
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In a medium bowl, combine the all-purpose flour and salt.
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Add the flour mixture to the wet ingredients and mix on low speed until a soft dough forms and pulls away from the sides of the bowl. Scrape the bowl as needed.
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Divide the dough into two portions, shape each portion into a disc, and flatten slightly.
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Wrap the dough and chill for about 2 hours.
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Preheat the oven to 375ºF.
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Roll the dough to ¼ inch thickness on a lightly floured surface and cut with cookie cutters.
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Place the cookies on a parchment-lined cookie sheet and bake one sheet at a time for 8 to 10 minutes, or until the edges begin to turn golden brown.
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Cool the cookies on the baking sheet for a few minutes, then transfer them to a wire rack.
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Decorate the completely cooled cookies as desired.
Royal Icing
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Combine the milk and corn syrup in a small bowl.
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Slowly mix in the powdered sugar to prevent clumps.
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Add the vanilla extract and mix until smooth.
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Divide the icing and add food coloring if desired.
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Decorate the cookies and add sprinkles while the icing is still wet.
Notes
These cookies can be made in advance and frozen for up to 3 months.
Nutrition
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Calories: 168kcal
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Carbohydrates: 23g
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Protein: 2g
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Fat: 8g
Nutritional information is an estimate based on third-party calculations. Actual values may vary due to ingredients, measurements, and serving sizes.
© Mama Needs Cake
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