Preheat the oven to 350°F. Line a cookie sheet with parchment paper or a silicone baking mat. Set aside.
In the bowl of a stand mixer or with an electric hand mixer, combine the butter and powdered sugar until smooth.
Scrape down the sides of the bowl and add in the eggs and cake batter flavor, mixing until mostly combined.
Next add the flour, baking powder and salt. Begin to mix and add up to 3 tsp of water to bring the dough together, the dough should be soft and easy to work with.
Mix in sprinkles until just combined.
On a floured surface, roll the dough out until it is approximately ¼ inch thick and use a 2 ½ inch circle cookie cutter to cut the dough. These cookies will not spread so roll to your desired finished thickness.
Arrange on the cookie sheet and bake at 350°F for 7-9 minutes or until the cookies are matte looking on top and have puffed up.
Make the icing while the cookies are baking by combining the butter and vegetable shortening until smooth.
Add the powdered sugar and enough milk to bring the mixture together into a thick frosting.
Mix in the clear vanilla extract and thin the icing out with milk until it is your desired consistency.
As soon as the cookies come out of the oven, spread a thin layer of the icing onto the cookies. Leave the icing thin so you can see the sprinkles underneath the icing.
Allow the cookies to cool and enjoy!
