Christmas Cream Cheese Sugar Cookies (with Buttercream Frosting)

My super simple Cream Cheese Sugar Cookie recipe adds a fun spin to the classic sugar cookie we all adore. These cookies are exactly the kind you’ll want to bake again and again this holiday season! I fold rich, creamy cream cheese and freshly grated lemon zest right into the dough, giving them a gentle tang and a lively citrus kick that wakes up the usual sweet flavor. Just a hint of vanilla rounds it all out, creating a perfectly balanced sugar cookie that practically melts in your mouth—even without frosting.

What I really love about these is how fast and easy they are to make. This dough yields 20 large, stunning cookies and comes together in no time, especially if you use a food processor or a stand mixer. Plus, it rolls out like a dream and cuts into shapes without any fuss. They’re perfect for baking with the kids, sharing at a holiday cookie swap, or filling festive gift tins. If you’ve ever thought making cutout cookies was hard, don’t worry—this recipe is truly foolproof and beginner-friendly.

Why No One Can Resist Cream Cheese Sugar Cookies

When I imagine the perfect sugar cookie, I want it thick enough to enjoy warm right out of the oven, just sweet enough but never too much, and, of course, bursting with flavor. These cookies check all those boxes. I’ve tried countless recipes over the years, but I really focused on creating a bold yet balanced flavor here—something that shines whether you eat them plain or load them up with frosting.

Honestly, I’ve been let down by many store-bought iced sugar cookies—they’re often overly sweet, dry, crumbly, or even hard as a rock. But my cream cheese sugar cookie dough? It’s soft, tender, with a slight creaminess that you’ll find yourself craving.

These Cookies Just Taste Amazing. The cream cheese adds rich depth and a hint of tang, making them extra special. The lemon zest brightens the flavor with a fresh burst that plays beautifully against the vanilla. That classic trio of cream cheese, lemon, and vanilla turns a simple sugar cookie into a little magic. And the smell while they’re baking? So cozy and inviting—it’s like a warm hug from the kitchen.

The Texture is Absolutely Spot On. These cookies stay soft yet keep their shape perfectly, which makes them ideal for decorating. We roll the dough out to about ¼-inch thick—slightly thicker than usual—giving each bite a satisfying chew without feeling cakey. Add some buttercream or icing on top, and you’ve got a gorgeous canvas to show off your seasonal decorating skills. Whether you bake a batch for a party or just a quiet night at home, this recipe becomes a fast favorite you’ll come back to every year.

Looking for more festive cookie ideas? Make sure to check out my Christmas Cookie Ideas roundup, and try my personal hits like Cranberry and Pistachio Shortbread Cookies or the flaky Chocolate Rugelach that everyone can’t stop talking about.

Key Ingredients for These Christmas Sugar Cookies

This recipe makes 20 big, beautiful cookies, and the buttercream recipe I share below makes just the right amount to frost them all. If you plan on getting fancy with decorating, I recommend doubling the buttercream recipe so you don’t run out. The best part? Leftover frosting freezes beautifully and waits patiently for your next cookie craving.

• Unbleached All-Purpose Flour: This gives the cookies structure and a tender crumb. I always sift mine before mixing to keep the dough silky smooth and lump-free.
• Full-Fat Cream Cheese: Full-fat is what you want here—it delivers that rich tang and creaminess you just can’t get from lighter versions. It takes these cookies to a whole new level.
• Baking Powder: This little leavener lifts the cookies just enough so they stay delicate and soft, never flat or dense.
• Large Egg: The egg holds everything together, making sure your dough rolls out smoothly and cuts cleanly.
• Pure Vanilla Extract: A splash of real vanilla deepens the flavor, pairing beautifully with the cream cheese and lemon zest.
• Granulated Sugar: This sweetens the dough, giving those classic sugar cookie flavor and tender texture we all crave.
• Lemon Zest: Just a touch adds a bright, fresh note that perfectly complements the creamy cheese and vanilla.
• Unsalted Butter: This provides richness and moisture, plus it helps make the cookie tender and crumbly. Be sure your butter is softened to room temperature—cold butter won’t blend in well here.

Want the exact ingredient amounts and a step-by-step how-to? Scroll down to the recipe card below!

How to Make Cream Cheese Sugar Cookies

You’ll get tender, perfect sugar cookie dough by using either a food processor or a stand mixer—whichever is easier for you. I often reach for my food processor because it’s quick and mess-free, but both methods are included in the recipe card so you can choose.

Step 1: In a large mixing bowl, whisk together the flour, baking powder, and salt until well combined. This makes sure your dough is consistent and that the leavening is nicely spread.

Step 2: Crack the egg into a small bowl, add the vanilla extract, and whisk it all together until smooth.

Step 3: Pour the sugar into the food processor bowl, then grate fresh lemon zest right over the sugar. Pulse it a few times to blend the zest in, letting that bright citrus scent fill the kitchen.

Step 4: Add the softened butter and cream cheese into the bowl with the sugar and lemon zest.

Step 5: Pulse everything until the mixture is creamy and smooth with no lumps.

Step 6: While the processor is running, slowly pour the egg and vanilla mixture down the feed tube, blending it fully into the dough.

Step 7: Add all the dry ingredients in one go.

Step 8: Keep pulsing just until the dough starts to clump together into a ball.

Tip: The dough might feel a bit sticky at this stage. Be sure to dust your work surface and hands well with flour to keep it from sticking when you roll it out.

Step 9: Divide the dough into two equal pieces. Wrap each tightly in plastic wrap and chill for at least 2 hours. Letting it rest like this firms up the dough, making it much easier to roll and cut.

Step 10: When you’re ready to bake, generously flour your work surface and roll out one piece of chilled dough to about ¼-inch thickness.

Step 11: Use your favorite cookie cutters or a sharp knife to cut festive shapes out of the dough. Gather up the scraps, reroll, and keep cutting until you’ve used all the dough.

Step 12: Arrange your shaped cookies on parchment-lined baking sheets, spacing them apart so they bake evenly.

Step 13: Bake in a preheated oven until the bottoms just start to turn a light golden color around the edges.

Step 14: Remove from the oven and let the cookies sit on the baking sheet for a few minutes before transferring them to a wire rack to cool completely. This step helps them set so they’re easier to decorate later.

How to Decorate with Buttercream Frosting

One of the most fun parts of holiday baking is decorating your cookies to match the festive spirit. For these cream cheese sugar cookies, I love using classic American buttercream frosting. My favorite is a simple, silky Vanilla Buttercream that pairs perfectly with the cookie’s tangy sweetness.

For decorating, you only need a few tools: piping bags, a couple of basic piping tips, and of course, a bit of patience. With those, you’ll take your cookies from plain to party-ready in no time!

The buttercream recipe I include below makes just enough to frost this whole batch of cookies beautifully. But if you want to get elaborate or use lots of layers, double the recipe to avoid running short. Plus, any leftover buttercream freezes wonderfully—great for your next baking adventure.

How to Store These Sugar Cookies

These cookies store beautifully if you handle them right! If you haven’t added frosting yet, keep them in an airtight container at room temperature and they’ll stay fresh for up to 10 days. The dough freezes well too—just pop it in a freezer-safe bag after chilling, and bake fresh cookies whenever you want. Dough keeps up to a month in the freezer.

Once frosted with buttercream, the cookies stay fresh at room temp for about 3 days when stored in an airtight container. If you’re gifting them, send along the plain baked cookies paired with a small jar of frosting or a recipe plus some pastry bags so your friends or family can decorate together. It’s such a thoughtful, fun gift for anyone who loves to bake!

More Amazing Cookies to Enjoy

Once you’ve nailed these cream cheese sugar cookies, keep the festive baking going with some of my other favorites. These recipes will fill your kitchen with warmth and get everyone asking for seconds (or thirds!).

If you give these Cream Cheese Sugar Cookies a try, please come back to share your thoughts with a rating or a comment below. I’m always excited to hear about your baking wins and how your cookies turn out!