Start by mixing the butter and granulated sugar together in a mixing bowl. You want to cream them until the mixture is light and fluffy, which takes about three to five minutes. This step is crucial as it incorporates air into the dough, leading to a lighter cookie. Add in the eggs, milk, and vanilla extract and mix until everything is well combined.
In a separate bowl, whisk together the dry ingredients: all-purpose flour, baking powder, and salt. Slowly add this mixture to the wet ingredients, combining gently until a dough starts to form. Be careful not to overmix as this can lead to tough cookies.
Once combined, if the dough seems too sticky, add a bit more flour until it reaches a manageable consistency. The goal is to form a large dough ball. Wrap it in plastic wrap and place it in the refrigerator for at least thirty minutes. Chilling the dough helps to firm it up, making it easier to roll out later.
After chilling, dust your countertop with flour. Roll the dough out to about half an inch thick. Be generous with the flour to prevent sticking. Use your favorite cookie cutters to cut out shapes. You can also use a round drinking cup if you don’t have specific cookie cutters.
Prepare a baking sheet by lining it with parchment paper. This will help prevent the cookies from sticking. Place the cut-out cookies on the sheet, giving them some space as they will spread a little while baking.
Preheat your oven to 350 degrees F (175 degrees C). Bake the cookies for about seven to ten minutes. You want them to be light in color and just set. They will firm up as they cool, so be careful not to overbake.
While the cookies are baking, make the frosting. In a mixing bowl, beat together the cream cheese and more butter until it's smooth and creamy. Gradually add in the powdered sugar and vanilla extract, mixing until you reach your desired thickness. You can add more powdered sugar if you like it thicker.
Once the cookies are baked, let them cool completely on a wire rack before frosting. This is important as hot cookies can melt the frosting. Once cool, spread the frosting generously over each cookie and top with colorful sprinkles if desired.
Finally, enjoy your homemade Sugar Cookies with a glass of milk or share them with friends and family!