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

In a large mixing bowl, use an electric mixer to beat the softened cream cheese and butter until smooth and creamy. Add the egg and vanilla extract, and mix until fully combined.

Gradually add the yellow cake mix to the wet ingredients, mixing until a thick, sticky dough forms.

Gently fold in the holiday sprinkles, being careful not to overmix to prevent the sprinkles’ colors from bleeding into the dough.

Cover the dough and refrigerate for at least 30 minutes. Chilling makes the dough easier to handle and prevents excessive spreading during baking.

Scoop out portions of the dough (about 1 1/2 tablespoons each) and roll them into balls. Coat each ball generously in powdered sugar.

Place the dough balls on the prepared baking sheets, spacing them about 2 inches apart. Bake in the preheated oven for 10-12 minutes, or until the edges are set but the centers remain slightly soft.

Let the cookies cool on the baking sheets for 2-3 minutes before transferring them to a wire rack to cool completely.

Use Room Temperature Ingredients: Softened cream cheese and butter ensure a smooth and creamy dough.

Generously Coat in Powdered Sugar: This step creates the signature crackled appearance once baked.

Don’t Overbake: The cookies should look slightly underdone in the center when removed from the oven. They will continue to set as they cool.