Step 1: In a large mixing bowl beat butter and cream cheese with an electric mixer on medium speed for 30 seconds.
Step 2: Add powdered sugar, baking powder, and salt. Beat until combined, scraping sides of bowl occasionally.
Step 3: Beat in egg and vanilla.
Step 4: Beat in as much of the flour as you can with the mixer. Stir in any remaining flour
Step 5: Divide dough into five equal portions; place each portion in an individual bowl.
Step 6: Add desired paste food coloring to four portions, stirring or kneading until dough is evenly colored.
Step 7: Wrap each portion in plastic wrap or waxed paper.
Step 8: Chill dough about 1 hour or until easy to handle.
Step 9: On a lightly floured surface, roll one portion of the dough at a time until 1/8 inch thick.
Step 10: Cut into 1-inch-wide strips with a fluted pastry wheel; cut dough strips into squares, diamonds, and triangles.
Step 11: Overlap dough pieces in groups of about 10 on an ungreased cookie sheet until the group of pieces is slightly larger than a 3-inch mitten-shaped cookie cutter.
Step 12: With the floured mitten-shaped cutter, cut out dough.
Step 13: Bake in a 375 degrees F oven for 8 to 9 minutes or until edges are firm and bottoms are very lightly browned.
Step 14: Transfer cookies to a wire rack and let cool.
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