1 lb butter
8 oz cream cheese
2 c sugar
2 egg yolks
1 tsp vanilla
4 1/2 c flour
Cream margarine and cheese. Add sugar and egg yolks. Add remaining ingredients. Chill about an hour. Roll on lightly floured board and cut into desired shapes. Do not roll too thin. Bake 10-12 minutes in 350 degree oven. Do not overbake. Frost when cooled. Freeze well. 

Icing: 
Add light cream to 2 cups confectionery sugar, a dash of salt, and 1 tsp vanilla. Food coloring as desired

 

(I ran out of time so I used sugar sprinkles instead of icing.)