The Best Soft Christmas Cutout Sugar Cookies

If you’re looking for the softest, thickest Christmas Cutout Sugar Cookies that hold their shape and taste even better the next day, this is the recipe you’ll come back to every holiday season! The dough rolls out beautifully, cuts cleanly, and stays tender long after decorating. This is the cozy, reliable Christmas cookie recipe your holiday trays have been missing!

Thick and Soft Holiday Cutout Sugar Cookies!

It’s the most wonderful time of the year – Christmas! I am in the midst of trying to figure out what picture to use for our Christmas card, which treats I’ll make for my son’s Christmas program, what gifts we are going to exchange at a Christmas party, and how many of these super soft and amazingly delicious Christmas Cutout Sugar Cookies to decorate for our friends, family, and neighbors!

I just love the holidays! The Christmas lights and carols, sappy Hallmark movies, the warmth of hot cocoa, Christmas parades, and time with our favorite people. The whole season makes me feel extra cheery and snuggly!

Every year we try to keep our same traditions. Some of my favorite Christmastime memories are made in my Mom’s kitchen!

Why this Recipe Works:

• Brown Sugar Keeps the Cookies Soft – It’s extra moisture creates tender, fluffy cutouts that stay soft for days.
• Softened Butter Makes a Smooth, Rich Dough – Easy to roll out and perfect for clean, defined shapes.
• Milk Adds Moisture and Prevents Dryness – Giving the dough a pliable, workable texture.
• Cream Cheese Frosting Adds Creamy Richness – Soft, fluffy, and perfectly spreadable for decorating.

Ingredients You’ll Need for the Cookie Dough:

• 2 cups Brown Sugar – Adds moisture and warmth, giving the cookies their signature soft, tender texture.
• 1 cup Butter (Softened) – Creates a rich, buttery base and helps the cookies hold their shape while staying soft.
• 2 Eggs – Binds the dough and adds structure without making the cookies dry.
• 1 tsp Vanilla Extract – Adds cozy holiday flavor and enhances the sweetness.
• 5 cups Flour – Provides structure for thick, clean edged cutout cookies.
• 2 tsp Baking Powder – Gives a gentle lift so the cookies stay soft and fluffy.
• 1/2 tsp Baking Soda – Helps with browning and softness, balancing the texture.
• 1/2 cup Milk – Adds moisture and helps create a smooth, easy to roll dough.

And the Cream Cheese Frosting:

• 8 oz Cream Cheese (Softened) – Makes the frosting creamy, tangy, and perfectly spreadable.
• 1/2 cup Butter (Softened) – Adds richness and helps the frosting whip up fluffy.
• 1 tsp Vanilla Extract – Warm, sweet flavor that pairs beautifully with holiday cookies.
• 3 1/2 cups Powdered Sugar – Sweetens and thickens the frosting to a smooth, spreadable consistency.

How to Make the Best Soft Christmas Cutout Sugar Cookies

NOTE: This dough does not require chilling.

1. Preheat oven to 350 degrees.
2. Line baking sheet with parchment paper and set aside.
3. Mix 2 cups brown sugar, 1 cup softened butter, and 2 eggs together. Add 1 tsp vanilla extract. Mix until well combined.
4. In a separate bowl, combine 5 cups flour and 2 tsp baking powder.
5. In another separate bowl, dissolve 1/2 tsp baking soda in 2 tbsp hot water.
6. Alternate adding 1/3 of the flour mixture, 1/3 of the hot water mixture, and a 1/3 of the milk into the brown sugar mixture. (The total amount of milk you will use is 1/2 cup) Repeat until mixtures and all ingredients are well combined. 
7. Using 1/3 of the dough at a time, spoon onto generously floured countertop and gently fold so the dough isn’t sticky. (Be careful not to use too much flour, that will make the cookies tough.)
8. Roll out to desired thickness and cut out with desired cookie cutters.
9. Transfer the cutouts onto the parchment paper lined baking sheet and bake for 10 minutes. (Depending on the thickness of the cutouts, you may need to decrease or increase the baking time. For thinner cutouts, decrease the baking time. For thicker cutouts, increase the baking time.)
10. To make the cream cheese frosting, combine 8 oz softened cream cheese, 1/2 cup softened butter, and 1 tsp vanilla. Beat until well mixed.
11. Add 3 to 3 1/2 cups powdered sugar and beat until smooth. (The amount of powdered sugar depends on the consistency you desire. The more powdered sugar you use, the thicker the frosting will be.)
12. Spread frosting over the cookies and decorate with Christmas sprinkles.

More Christmas Cookies:

• White Chocolate Chip Cranberry Cookies
• Christmas Peanut Butter Blossoms
• Gingerbread Man Cookies
• Christmas Sprinkle Cake Mix Cookies
• Gingersnap Cookies