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In a large bowl, cream the softened butter and sugar together until light and fluffy, then mix in the vanilla extract.
Gradually sift in the all-purpose flour, cornstarch, and a pinch of salt, mixing just until a soft dough forms.
Gently fold in the chopped dried cranberries and pistachios, shape the dough into logs, roll in granulated sugar, chill, and slice into thick rounds.
Bake at 350°F (175°C) for 12–15 minutes until the edges are lightly golden.
Serve warm alongside a scoop of vanilla ice cream drizzled with caramel sauce!