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Cream the butter and cream cheese until smooth.
Add the egg and vanilla, mixing just until combined.
Beat in the cake mix until the dough is fully blended.
Stir in ¼ cup of the sprinkles.
Refrigerate the dough for at least 1 hour or overnight.
Preheat the oven to 350 degrees. Lightly grease a cookie sheet or line it with parchment paper.
Scoop rounded tablespoons of dough and roll each into a 1-inch ball.
Sprinkle the tops with some of the remaining sprinkles, then roll each ball in confectioner’s sugar until fully coated.
Place the dough balls about 2 inches apart on the prepared cookie sheet.
Bake for 8 to 10 minutes. Let the cookies rest on the sheet for 2 minutes, then transfer them to a wire rack to cool completely.