This cream cheese sugar cookie recipe is one of my all-time favorites! The cookies bake up deliciously soft and chewy and are decorated with my signature almond royal icing.

It’s an incredibly versatile recipe that can be used to make just about any cookie! I’ve used it as the base recipe for everything from my mini conversation heart cookies to my turkey sugar cookies.

How to Make This Cream Cheese Sugar Cookie Recipe

To make sure these cookies turn out as amazing as possible, let’s walk through each step together.

I’ve also shared a video and a list of the tools/equipment I used to make these cookies. Don’t worry if you don’t have everything on hand, you can always improvise with what you have.

• Electric hand mixer or stand mixer
• Parchment paper or silicone baking mats
• 2 Large baking sheets
• 2- or 3-inch cookie cutter
• gel food coloring – optional
• Rolling pin rings – optional but so helpful!

Step 1: Make the Cream Cheese Sugar Cookies

Begin by making the sugar cookie dough, following the recipe card at the bottom of this post.

The dough should be pretty thick and sticky. Divide the dough in half and wrap each portion in a piece of plastic wrap.

I like to flatten the dough into a rectangle that’s about 1/2 inch thick to make it easier to roll out once it’s chilled.

Chill the dough in the fridge for about 2 hours or in the freezer for 30 minutes. It can also be chilled overnight.

Preheat the oven to 350 F / 175 C for about 30 minutes before you plan to roll out the dough, and line two large baking sheets with silicone baking mats or parchment paper. Set aside.

Take one piece of dough out of the fridge, leaving the other in there to continue to chill. If you put the cookie dough in the freezer, let it sit at room temperature for 5-10 minutes to soften up a bit before trying to roll it out.

Unwrap the cookie dough and lay the plastic wrap out flat on your counter. Dust both sides of the cookie dough and your rolling pin with flour.

Then roll the chilled dough to be 1/3 inch thick (these rolling pin rings help a ton with getting a consistent thickness) and cut out shapes with a 2- or 3-inch cookie cutter.

These cookies don’t spread much as they bake, so you can place them about 1 inch apart.

Chill the cut-out cookies one more time in the fridge for 15 minutes or the freezer for 5 minutes to help them keep their shape as they bake.

Bake one sheet of cookies at a time. Bake for 12-15 minutes on the middle rack of your oven (bake time will vary based on the size and shape of the cookies and the dough’s thickness).

The edges should be set, but it’s ok if the centers look a little bit soft. The cookies will continue to bake and firm up as they cool on the baking sheets.

Keep a close eye on the cookies and be sure to pull them out before the edges start to brown. Let the baked cookies cool on the pan for about 15 minutes, then transfer to a wire rack to finish cooling.

While the first batch bakes and cools, knead together the cookie dough scraps and rewrap them in plastic wrap. Pop them back in the fridge to chill.

Pull out the 2nd chilled portion of dough and repeat the process. Then repeat with the chilled dough scraps.

Step 2: Make the Royal Icing

While the cookies bake and cool, make the royal icing.

Whisk together the powdered sugar and meringue powder in a large bowl or the bowl of a stand mixer.

Add in the water and vanilla or almond extract and mix on a medium speed with a paddle or whisk attachment until stiff peaks form.

This usually takes me about 3 minutes with a hand mixer or 2-3 minutes with a stand mixer.

Step 3: Testing the Consistency of the Icing – The Spatula Test

Next, add additional water 1 Tbsp at a time until the icing reaches a soft peak consistency.

I usually add 1-2 Tbsp of water, but it can vary from batch to batch. Scrape the sides and bottom of the bowl to make sure the water is incorporated into all of the icing.

To test the consistency, dip the spatula into the icing and focus on the way it curls at the end of the spatula. It should curl back onto itself but still be able to keep its shape.

This is the consistency I use to outline cookies and pipe on details like eyes.

If it’s too stiff, add a tiny bit more water. Or, if it’s too thin, add more powdered sugar, 1 Tbsp at a time.

Step 4: Color the Royal Icing

Then, it’s time to thin and color the icing. You should have roughly 18 ounces of icing.

Figuring out how much of each color and which consistencies you need can take a bit of guesswork. However, you should have some leftover icing, which gives you a bit of leeway.

A starting point is to see how many colors you need, then divide 18 oz. by that number. Then you can factor in things like how much you’ll need to flood the entire cookie (maybe you need more of your base color), if you need soft peak/outline consistency in every color, and if you need any other consistencies like thick flood. For example, you might only need 1 oz. of black icing in soft peak consistency to pipe on eyes and a mouth.

For each color, I scoop the total amount of icing I need into a separate bowl, then color it with gel food coloring while it’s in the soft peak stage.

Then, scoop 1 oz. of the colored soft-peak consistency icing into a small piping bag, seal the top, and set it aside. This will be used to outline the sections of the cookie that will be flooded.

Then, I thin the remaining icing in that color by adding water, 1/2 tsp at a time, until the icing reaches flood consistency.

To test the consistency, the icing should be able to run off the spatula in a thick stream, and you should be able to draw a figure 8 with the run-off icing.

It should settle back into the bowl of icing within 8 seconds. Once the icing is thinned to this consistency, pour it into a piping bag and seal the top. Set aside.

Repeat with the remaining icing to make the colors needed for your cookie design.

Step 5: Decorate the Cookies

When you’re ready to decorate the cookies, cut the tips of the piping bags to create a very small opening (1-2 millimeters). You can always cut the opening wider, but you can’t make it smaller once you cut it. I find it’s easier to control the icing as you decorate the cookies if you have a small opening.

Outline the cookies with the soft peak consistency icing. Then let them dry for 5-10 minutes before flooding the cookies with flood-consistency icing, as shown in the pictures below.

Let the initial layer of icing firm up. Then add the next layer of icing or any fine line details with soft peak consistency icing (unless you are using a wet-on-wet technique).

Then, let the cookies dry for a few hours or overnight until the icing is firm to the touch. These cookies can be stored in an airtight container for up to two weeks at room temperature or up to 3 months in the freezer.

Substitutions and Swaps – Cream Cheese Sugar Cookies

While I love this recipe just the way it is, you might not have all these ingredients! Or you might have food restrictions or allergies.

Below are some swaps and variations that can be made to this recipe.

• Unsalted Butter – If you only have salted butter, you can use it and omit the salt that this recipe calls for. You can also use vegan butter.
• Cream Cheese – I recommend using the full-fat cream cheese that comes in a block.
• Granulated Sugar – I do not recommend reducing the amount of sugar or changing the type of sugar. It will change the spread of these cookies.
• All-purpose flour – You can use a gluten-free flour blend in place of the AP flour in this recipe.
• Cornstarch – Cornstarch helps give these cookies a soft texture! If you don’t have any one hand, it can be omitted, but your cookies won’t bake up as soft.
• Almond Extract – If you have a nut allergy, you can use vanilla extract or a different extract in place of the almond extract.
• Meringue Powder – This ingredient is a must for the royal icing. It has stabilizers (usually cornstarch and sugar), which help the icing to whip up. For this reason, I don’t recommend using dried egg white powder as a substitution.
• Gel Food Coloring – I highly recommend using gel or powdered food coloring to color the icing. Liquid food coloring can throw off the consistency of the icing.

How Many Cookies Does This Recipe Make?

This recipe can be used to make about 24, 3-inch cookies. The yield and bake time will vary based on the size and shape of the cookie cutter you use and the thickness of your dough.

This recipe can be halved to make fewer cookies (use half a scrambled egg in the dough), but I don’t recommend doubling it unless you have a commercial (8 qt.) stand mixer.

Tips for Making the Best Cream Cheese Sugar Cookies

• Really cream together the butter, cream cheese, and granulated sugar in the first step of this recipe. It helps incorporate air into the dough, which makes soft cookies.
• Roll the cookie dough out to a consistent thickness of 1/3 inch. If some are thicker or thinner than others, they may over- or under-bake in the oven.
• Take the time to chill the cookie dough. It helps prevent your cookies from spreading while they bake and helps them bake up with a soft texture.
• Don’t overbake the cookies. Err on the side of underbaking your cookies, and remember that the cookies continue to bake once they’re out of the oven.
• Avoid leaving the icing uncovered for long periods of time, or it will crust! Either use it immediately or cover it with plastic wrap.
• Use gel food coloring to color the icing. It helps create vivid colors without throwing off the consistency of the icing.
• Make and color the icing right before you plan to decorate the cookies. Otherwise, the icing can separate!

Making This Cream Cheese Sugar Cookie Recipe in Advance and Storage Tips

You can store decorated cookies in an airtight container for up to 2 weeks at room temperature or for up to 3 months in the freezer.

If you want to stack the cookies on top of one another, I recommend adding a layer of parchment paper between them.

This cookie dough can also be frozen for up to 1 month if wrapped tightly in plastic wrap and stored in an airtight container. I like to move the cookie dough to the fridge the night before I plan to roll it out and bake the cookies.

Baked, un-iced cookies can also be frozen! These cookies last for up to a month if frozen in an airtight container. I recommend waiting to decorate them until they’ve thawed to room temperature.

Move them to the fridge the day before, then let them sit at room temperature for a few hours before icing them.

Let Me Know What You Think!

If you make this cream cheese sugar cookie recipe, I’d love to hear how it turns out! Please leave a rating and comment below.

And if you share on social media, tag me @chelsweets and use #chelsweets so I can see your delicious creations!

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