The Best Christmas Cutout Sugar Cookies are soft, buttery, and hold their shape perfectly for decorating! This easy, no‑fail recipe creates classic sugar cookies that roll out smoothly, bake evenly, and taste just as good as they look!

Why this Recipe Works

The Butter to Flour Ratio Creates Structure Without Dryness – Using enough flour to support the dough, without overdoing it, ensures the cookies don’t spread while still baking up tender and soft.

No Chill Dough – I love how these cookie bake perfectly without chilling the dough!

Rolling to an Even Thickness Ensures Consistent Baking – Even thickness means all cookies bake evenly – no overdone edges or under baked centers.

Cream Cheese Frosting Balances Sweetness Perfectly – The slight tang from cream cheese offsets the sweetness of the cookies and powdered sugar, creating a rich, smooth frosting that spreads easily and tastes incredible.

Christmas cutout sugar cookies in holiday shapes with cream cheese frosting

Ingredients You Need for the Cutout Cookies

1 cup Butter (Softened) – Provides rich flavor and creates a tender, buttery cookie base.

1 cup Sugar – Sweetens the dough and helps the cookies brown lightly.

1 tsp Vanilla – Adds classic sugar cookie warmth and depth.

1/2 tsp Almond Extract – Enhances flavor and gives that signature bakery-style taste.

1 Egg – Binds the dough and adds structure.

3 cups Flour – Forms the foundation of the cookies and helps them hold their shape.

2 tsp Baking Powder – Gives the cookies a soft lift without spreading too much.

1/2 tsp Salt – Balances the sweetness and brings out the flavors.

And the Cream Cheese Frosting

1 (8 oz) Cream Cheese (Softened) – Creates a smooth, slightly tangy frosting that pairs perfectly with sweet cookies.

1/2 cup Butter (Softened) – Adds richness and helps the frosting whip up light and creamy.

3 1/2 cups Powdered Sugar – Sweetens and thickens the frosting for easy spreading.

1 tsp Vanilla – Completes the frosting with a warm, classic flavor.

Decorated Christmas sugar cookies in festive holiday shapes

How to Make the Best Christmas Cutout Sugar Cookies

Preheat oven to 350 degrees.

In a large bowl, beat 1 cup softened butter and 1 cup sugar together until smooth.

Beat in 1 tsp vanilla, 1/2 tsp almond extract, and 1 egg until well combined.

In a separate small bowl, whisk together 3 cups flour, 2 tsp baking powder, and 1/2 tsp salt.

Gradually beat the dry ingredients into the wet. If the dough looks crumbly, keep mixing. The dough should be pulling away from the sides of the bowl.

If the dough still looks too dry or stiff, transfer it to a floured surface. Wet your hands and finish kneading the dough by hand.

Divide the dough into workable batches, roll out to 1/4″ onto a floured surface, and cut out shapes with desired cookie cutters. You want these to be on the thicker side.

Bake for 6-8 minutes.

While cooling, make the cream cheese frosting by beating together 1 (8oz) softened cream cheese, 1/2 cup softened butter, 3 1/2 cups powdered sugar, and 1 tsp vanilla until you reach frosting consistency.

Decorate cookies with frosting and sprinkles.

Measure Flour Correctly – Lightly spoon the flour into your measuring cup and level it off. Packing in too much flour makes cookies dry and tough.

Roll Dough Into Even Thickness – Aim for about 1/4″ thick so the cookies bake evenly and stay soft while still holding clean edges.

Do Not Over Bake – Cutout cookies should look set but very lightly colored on the edges. They will firm up as they cool, staying soft on the inside.

Batch Size Varies – The number of cookies you get out of this batch will vary due to the cookie cutter size.