Best Soft Christmas Cutout Sugar Cookies

November 5, 2025
Serves 4–6

These Best Soft Christmas Cutout Sugar Cookies are the perfect holiday treat! They’re soft and tender, easy to cut into festive shapes, and just a little sweet with that classic sugar cookie flavor we all love. The dough holds up beautifully so you can decorate with icing or sprinkles without any fuss.

I love making these cookies because they’re so much fun to decorate with family and friends. I always find myself smiling while rolling out the dough and using cookie cutters shaped like stars, trees, and snowmen. Plus, the soft texture means they’re great for little hands who want to help—no struggling with crumbly cookies here!

My favorite way to serve these is on a big holiday platter, surrounded by colorful frosting and toppings. They make any Christmas gathering feel extra special, and I love sending a few in little gift bags to friends and neighbors. These cookies bring a little warm cheer with every bite, and I’m sure they’ll become a holiday favorite for you too!

Key Ingredients & Substitutions

Butter: Using softened unsalted butter gives the cookies a tender texture. You can substitute with margarine or coconut oil, but the flavor may change slightly.

Flour: All-purpose flour is best here for structure and softness. If you want gluten-free, try a 1:1 gluten-free baking flour blend.

Sour cream or Greek yogurt: This adds moisture and softness. If you don’t have these, you can use buttermilk or even milk with a splash of lemon juice.

Almond extract: This is optional but adds a nice warm flavor that pairs well with vanilla. You can skip it or use an extra 1/2 tsp of vanilla if preferred.

Powdered sugar in frosting: This makes the icing smooth and easy to spread. If you want a dairy-free option, use a non-dairy milk like almond or oat milk instead of regular milk.

How Can I Keep My Sugar Cookies Soft While Using Cutout Shapes?

Soft cutout cookies can be tricky because rolling and cutting dough sometimes makes cookies tough. Here’s how to keep them tender and soft:

  • Chill the dough: Refrigerating the dough helps it firm up, making it easier to cut shapes without stretching the dough.
  • Roll to 1/4 inch: Keeping the dough thickness uniform helps cookies bake evenly and stay soft inside.
  • Don’t overbake: Watch the cookies closely and take them out when edges just start to turn golden. Overbaking dries them out.
  • Use sour cream or yogurt: These ingredients add moisture and make the crumb soft.
  • Handle dough gently: Mix until just combined and avoid overworking it to prevent tough cookies.

Following these tips, you’ll get cookies that hold their fun shapes and stay soft enough to enjoy bite after bite!

Equipment You’ll Need

  • Mixing bowls – for easy mixing of dough and frosting without mess.
  • Electric mixer – makes creaming butter and sugar simple and quick.
  • Sifter or fine mesh sieve – helps keep flour and powdered sugar lumps-free.
  • Rolling pin – lets you roll dough evenly to the perfect thickness for cutting.
  • Festive cookie cutters – cut fun Christmas shapes like trees, candy canes, and stars.
  • Baking sheets lined with parchment paper – prevents sticking and helps cookies bake evenly.
  • Wire cooling racks – cool cookies quickly and keep bottoms crisp but centers soft.
  • Spoons or piping bags – useful for decorating cookies with frosting neatly.

Flavor Variations & Add-Ins

  • Add lemon or orange zest for a bright, fresh twist that balances the sweetness.
  • Mix in ½ teaspoon ground cinnamon or nutmeg for a warm, cozy flavor you’ll love on chilly days.
  • Use almond extract instead of vanilla for a nutty note that pairs well with festive decorations.
  • Fold in mini chocolate chips or chopped nuts for added texture and extra flavor surprise.

Soft Christmas Cutout Sugar Cookies

Best Soft Christmas Cutout Sugar Cookies

Ingredients You’ll Need:

For the Cookies:

  • 2 3/4 cups all-purpose flour
  • 1 teaspoon baking powder
  • 1/2 teaspoon salt
  • 1 cup unsalted butter, softened
  • 1 1/2 cups granulated sugar
  • 1 large egg
  • 1 teaspoon vanilla extract
  • 1/2 teaspoon almond extract (optional)
  • 1/4 cup sour cream or Greek yogurt

For the Frosting and Decorations:

  • 3 cups powdered sugar
  • 3 tablespoons milk (adjust for consistency)
  • 1 teaspoon vanilla extract
  • Food coloring (red, green, and other colors you like)
  • Assorted Christmas sprinkles and edible pearls

How Much Time Will You Need?

This recipe takes about 15 minutes to prepare the dough, then you’ll chill it for 1 hour or overnight to keep the cookies soft and easy to cut. Baking will take about 8-10 minutes per batch, plus time to cool and decorate. All together, plan for around 2 hours if chilling for 1 hour or longer if you chill overnight.

Step-by-Step Instructions:

1. Make the Cookie Dough:

In a medium bowl, whisk together the flour, baking powder, and salt. In a larger bowl, beat the softened butter and sugar together until light and fluffy, about 3-4 minutes. Add the egg, vanilla, and almond extract if using, and mix until just combined. Stir in the sour cream or Greek yogurt. Slowly add the dry ingredients and mix on low speed just until combined. Don’t overmix to keep cookies tender.

2. Chill and Prepare to Bake:

Divide the dough in half and shape each half into a flat disk. Wrap each in plastic wrap and refrigerate for at least 1 hour (or up to overnight). When ready, preheat the oven to 350°F (175°C) and line baking sheets with parchment paper.

3. Roll, Cut, and Bake:

Lightly flour your work surface and roll out one disk of dough to about 1/4 inch thick. Use your favorite Christmas cookie cutters and place cut shapes on the baking sheets, leaving some space between them. Bake for 8-10 minutes until the edges just start to turn golden. Remove from oven and let cool completely on a wire rack before decorating.

4. Make and Apply Frosting:

Combine powdered sugar, milk, and vanilla extract, stirring until smooth. Adjust the thickness by adding more milk for a thinner glaze or extra powdered sugar for a thicker icing. Divide into bowls and add food coloring. Spread or pipe the frosting onto cooled cookies and add sprinkles or edible pearls right away. Let the frosting set before serving or storing.

Equipment You’ll Need

  • Mixing bowls
  • Electric mixer
  • Sifter or sieve for flour and powdered sugar
  • Rolling pin
  • Festive cookie cutters
  • Baking sheets with parchment paper
  • Wire cooling racks
  • Spoons or piping bags for decorating

Flavor Variations & Add-Ins

  • Add lemon or orange zest to the dough for a fresh twist.
  • Include ½ teaspoon cinnamon or nutmeg for warm holiday spice.
  • Use almond extract instead of vanilla for a nutty flavor.
  • Mix mini chocolate chips or chopped nuts into the dough for extra texture.

Can I Use Frozen Dough for These Cookies?

Yes! You can freeze the dough wrapped in plastic for up to 3 months. Thaw in the fridge overnight before rolling out and cutting. This makes it easy to bake fresh cookies whenever you want.

How Should I Store Leftover Cookies?

Store decorated cookies in an airtight container at room temperature for up to 5 days. To keep them soft longer, place a slice of bread in the container—the moisture helps maintain softness!

Can I Substitute Greek Yogurt for Sour Cream?

Absolutely! Greek yogurt works just as well and adds moisture to keep cookies soft. Use the same amount and you’ll get delicious results.

How Do I Make the Frosting Thicker or Thinner?

Add powdered sugar a little at a time to thicken your frosting, or add a few drops of milk to thin it out. Adjust slowly until you reach your preferred spreading consistency.

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