Cookies: Line cookie sheets with parchment paper. Beat first five ingredients in a large bowl with an electric mixer until well combined and sugar is dissolved. Combine next four ingredients in a medium bowl. Add to butter mixture in thirds, beating until soft dough forms. Turn dough onto lightly floured surface. Knead lightly until smooth. Divide dough in half. Wrap each half in plastic wrap and refrigerate for 30 minutes.

Preheat oven to 375° F. Roll dough on a lightly floured surface to ¼-inch thickness.

Cut out shapes with a cookie cutter lightly dipped in flour. Place on prepared cookie sheets about one inch apart. Bake in preheated oven for about eight minutes until edges of cookies start to brown. Let stand for five minutes before transferring to a wire rack to cool completely.

Frosting: In a mixing bowl, combine butter and cream cheese, beating on medium speed until light and fluffy. On low speed, mix in vanilla extract as well as icing sugar, slowly incorporating until combined. Beat on high speed for about one minute, until fluffy. Spread icing on sugar cookies, and then sprinkle with coloured sugars.

Recipe courtesy of Company's Coming.