In a large mixing bowl, cream together the softened unsalted butter and full-fat cream cheese until smooth and fluffy, about 2-3 minutes.

Gradually add the granulated sugar, mixing until light and airy.

Incorporate the egg and vanilla extract until fully combined to create a rich and creamy dough.

In a separate bowl, whisk together the all-purpose flour, cornstarch, baking powder, and fine salt.

Gradually mix the dry ingredients into the wet mixture, stirring until just combined.

Wrap the dough tightly in plastic wrap, dividing it into two portions for ease and chill for at least 2 hours.

Preheat your oven to 350°F (175°C) and line baking sheets with parchment paper.

Roll the chilled dough out on a floured surface to a thickness of ⅓ inch and cut out cookie shapes.

Refrigerate cutouts for about 10 minutes to firm up before baking.

Transfer to the preheated oven and bake cookies for 12-14 minutes or until lightly golden around the edges.

Let the cookies cool on baking sheets for about 15 minutes before transferring to wire racks to cool completely.

Beat together the softened unsalted butter, vanilla extract, and a pinch of salt until creamy.

Gradually add the powdered sugar and heavy cream, beating until smooth and fluffy.

Frost the tops of the cooled cookies generously with buttercream, then dip into sanding sugar.

Use chocolate chips for noses and sprinkles for decorative accents.