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Make the Dough: Beat butter and cream cheese until smooth. Add sugar, egg, and vanilla; mix until fluffy. Combine flour, baking powder, and salt, then blend into wet mixture until dough forms.
Shape and Decorate: Preheat oven to 350°F. Roll dough into balls and coat with sprinkles.
Bake: Arrange on parchment-lined tray and bake for 10–12 minutes until golden edges form.
Serve: Let cool and enjoy soft, buttery cookies perfect for the holidays.