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Cut Out Sugar Cookie Recipe

2 secret ingredients make up some of the best ever sugar (circle OR cut-out) cookies. This Cut Out Sugar Cookie Recipe holds the shape of a cutter extremely well! Plus a delicious and creamy frosting recipe!
Course Dessert
Cuisine American
Keyword Cut Out Sugar Cookie Recipe
Prep Time 15 minutes
Cook Time 12 minutes
Total Time 27 minutes
Servings 24 cookies
Author Chelsea



  • 1 cup salted butter (2 sticks)
  • 1 cup + 2 tablespoons white sugar
  • 1 large egg
  • 1 and 1/2 teaspoons Mexican vanilla extract
  • 1/2 teaspoon almond extract, optional
  • 1/2 teaspoon orange extract, optiona
  • 1 teaspoon cornstarch
  • 2 teaspoons baking powder
  • 2 and 3/4 cups white flour


  • 1 package (8 ounces) full-fat cream cheese at room temperature
  • 1/2 cup salted butter soft but not melted, 1 stick
  • 2 teaspoons Mexican vanilla extract
  • 1/2 teaspoon orange extract, optional
  • 5-7 cups powdered sugar depending on desired thickness
  • 1-3 tablespoons heavy cream
  • Optional: sprinkles



  • Preheat the oven to 350 degrees F.
  • Cut the VERY cold (right out of fridge) butter with a knife into 1-inch cubes. Place in the stand mixer with the sugar. Beat until completely creamy and light.
  • Add in the egg, Mexican vanilla extract, almond extract, and orange extract. Beat until completely combined.
  • Add in the cornstarch, baking powder, and 1 cup of flour. Beat until completely combined scraping the edges as needed. Add in the next cup and beat until a dough forms. Add in the final 3/4 cup adding an additional 1/4 cup as needed for a dough that is firm enough to be cut out into shapes (or a circle).
  • If the dough looks crumbly, keep beating until a dough does form (it will form even though it looks like straight crumbles!!) and if needed knead it with your hands. Just be careful to not overwork the dough as that leads to tough cookies.
  • In between two sheets of plastic wrap or parchment paper, roll out the dough to about 1/2" thickness. Cut out the cookies and place on a parchment or silicone lined tray. Chill for 30 minutes.
  • Bake for 12-14 minutes watching carefully for when they slightly brown at the edges/bottom. Be careful to not overbake - the center should still look soft and not be brown at all. Under-baking slightly is huge for the flavor and texture of these cookies.
  • Allow to cool on a cooling rack for about 2 minutes. Then place the cookies in a single layer (or separated with wax paper) in a large re-sealable bag. Seal the bag to keep the moisture in and the cookies ultra soft. Remove when cooled and ready to frost.


  • In a stand mixer fitted with a whisk attachment, beat the room temperature cream cheese and softened (NOT melted) butter until completely combined and creamy. Add in the extracts.
  • Beat in the powdered sugar a cup at a time until well combined. I usually use around 6 cups, but it varies. Add until the frosting is to your desired thickness.
  • Thin the frosting as desired by slowly adding in heavy cream.
  • Frost the cookies (this recipe allows for a very generous amount of frosting) and top with sprinkles.
  • Store in an airtight container.