Preheat oven 350.
Combine flour, baking powder, and salt then set aside.
At medium-high speed, beat the butter and cream cheese until fluffy.
Add the sugar and beat again until fluffy, about 2 minutes.
Beat in egg and vanilla extract until combined.
At medium-low speed, gradually beat in the flour mixture until dough forms.
Flatten the dough out to 1/4" thickness and use cookie cutters. I chose the circle type. Decorate with fun sprinkles and bake for 10 minutes - or right before the edges turn golden. Allow to cool on baking sheet for 5 minutes before placing on a cooling rack. The center of the cookie will still be soft.
Decorate with icing once cooled.
This recipe makes about 30 cookies.