Ingredients:

1/2 cup butter or margarine
1 3oz package cream cheese (I usually double the recipe and use an 8 oz package)
2 cups flour
1 cup sugar
1 egg
1/2 tsp baking powder
1/2 tsp vanilla

Procedure:

Beat butter and cream cheese on medium speed for 30 seconds.  Beat in sugar, egg, baking powder and vanilla.  Add the flour.  Cover and chill for 1 hour. Roll out half the dough on a lightly floured surface 1/8 inch thick.  Use cookie cutter to cut out shapes.  Place 1 inch apart on ungreased cookie sheet.  Bake at 375 for 8 minutes (I usually do 7 minutes).  Cool and enjoy. To make chocolate cream cheese cutouts, add 2 oz semisweet chocolate, melted and cooled before you add the flour.