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Add the flour, butter and powdered sugar to a food processor or large mixing bowl. Mix until the ingredients come together. Add 1-3 tablespoons of water if the mixture is too dry.
Add the pistachios and cranberries to the cookie dough and mix until just combined.
If your dough is a little soft, place the dough in an airtight container and chill it in the fridge for around 1 hour or in the freezer for 30 minutes until it's firmed up.
Preheat the oven to 180°C (350°F).
Roll out the cookie dough on a lightly floured surface so it is about ¼ inch (7 mm) thick. Use a cookie cutter to cut shapes out of the dough. Carefully place each cookie on a lined baking tray with a little space in between each cookie. You may need to use a flat spatula to transfer them.
Collect the excess dough, roll it out and cut out more shapes from the dough. Repeat until you have no more dough.
Bake the cookies in the oven for 10 minutes. The time will vary depending on the size of your cookies and your oven. The cookies are ready when their edges are very slightly golden brown. Allow the cookies to completely cool on the baking tray.
If desired, top half of the cookies with jam and sandwich them with the remaining cookies.
Store the cookies in an airtight container at room temperature or the fridge for up to 1 week.