Using hand or stand mixer, cream together butter and cream cheese.
Add sugar, salt, egg, and vanilla to butter/cream cheese mixture and mix well.
Slowly add flour and baking powder and mix well.
Divide dough in half and wrap each half in plastic wrap then refrigerate for 1 hour.
Once dough is chilled, preheat oven to 375°F and line baking sheets with parchment paper. Lightly flour working surface and dough.
Roll dough out to 1/4" thickness then cut with a square cookie cutter. Then cut each square into fourths using a pizza cutter.
Sprinkle dough pieces with holiday sprinkles then place on baking sheet.
Bake for 8-9 minutes until the bottoms start to brown slightly. Let cool on baking sheet for 5 minutes, then transfer to cooling rack to finish cooling.
Serve in a bowl or on a platter and enjoy!
Work with half of the dough at a time so that the dough stays chilled and doesn’t get too soft. If dough gets too soft while cutting out cookies, put the cookies in the refrigerator for 5-10 minutes before baking.Get a mini square cookie cutter if you can. It makes making these sugar cookie bites even easier! You just need to cut them out and place them on the baking sheet rather than cutting out the large square and cutting into four.Lightly press the sprinkles into the dough after you sprinkle them on. This will help them adhere better to the dough for baking.Don’t overbake the cookies. They may still feel soft when the timer is up, but they’ll come together on the baking sheet.Store in an airtight bag and enjoy or freeze for up to five days for the best tasting cookies.Make sure any sprinkles end up on your parchment paper, not directly on the baking sheet. If they end up directly on the baking sheet, you’ll end up with burnt sugar that not only smells bad but is a pain to get off.