In the bowl of a stand mixer, blend butter and cream cheese with the paddle attachment on low speed. Mix until smooth and creamy.
Add sugar, egg and extracts. Mix again until combined.
Mix in remaining dry ingredients and blend into the creamed mixture, scraping the sides of the bowl as needed. Remove the dough and flatten the dough into a disk. Wrap in plastic wrap and chill the dough in the fridge for one hour.
Preheat the oven to 375ºF.
Roll out dough on floured surface until 1/4 inches thick (a must!) . Cut with desired cookie cutter shape, place on a parchment lined baking sheet and bake for 8-10 minutes.
Let cookies cool on the cookie sheets for 5 minutes, then move to a wire rack to cool completely.
Mix all the frosting ingredients in a small bowl and add some food coloring if desired.
Frost cookies when they are fully cooled. Allow the frosting to set before storing in an airtight container.
The key to making a good sugar cookie is to make sure that you cut the cookies thick enough and then don't over cook them.If you only have unsalted butter, add 1/2 teaspoon salt to the cookie dough along with the flour and other dry ingredients.Refer to the article above for more tips and tricks.The calories shown are based on the recipe making 24 cookies, with 1 serving being 1 cookie. Since different brands of ingredients have different nutritional information, the calories shown are just an estimate. **We are not dietitians and recommend you seek a nutritionist for exact nutritional information. The information in the nutrition box are calculated through a program and there is room for error. If you need an accurate count, I recommend running the ingredients through your favorite nutrition calculator.**