There are a lot of sugar cookie recipes out there, but this one is my tried-and-true, old-fashioned favorite—the kind that feels like it’s been passed down through generations and shows up every Christmas season.
These cookies are soft, tender, and lightly flavored with vanilla and a hint of nutmeg. The secret ingredient is a little splash of lemon extract, which brightens everything up without making the cookies taste “lemony.” Paired with a rich, fluffy cream cheese frosting and a handful of sprinkles, they’re the kind of sugar cookie that disappears quickly off the plate.
I especially love that this recipe makes a big batch, which is perfect for sharing with neighbors, bringing to gatherings, or letting kids go wild with cookie cutters and decorating. It’s a tradition to make a bunch of cookies and then hand them out in cute cookie boxes or tins to our neighbors and family as a simple, thoughtful gift for the holiday season.
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Old-Fashioned Sugar Cookies & Cream Cheese Frosting
Ingredients
Sugar Cookies
- 1 1/4 cups shortening
- 2 cups sugar
- 2 tsp baking powder
- 1 tsp baking soda
- 1/2 tsp nutmeg
- 1/4 tsp salt
- 2 eggs
- 1 tsp vanilla extract
- 1/2 tsp lemon extract secret ingredient
- 4 1/2 cups all-purpose flour
- 1 cup buttermilk
Cream Cheese Frosting
- 8 oz softened cream cheese
- 1/2 cup softened butter
- 1 tsp vanilla extract
- 3 cups powdered sugar
Instructions
Sugar Cookies
- Beat shortening with a mixer on high speed for about 30 seconds.
- Add the sugar, baking powder, baking soda, nutmeg, and salt. Beat until combined.
- Beat in the eggs, vanilla, and lemon extract.
- Add flour and buttermilk alternately until combined.
- Cover the dough and chill for a few hours until it’s easy to handle (not so sticky).
- Preheat oven to 375°F. Line cookie sheets with parchment paper.
- Lightly flour your surface and rolling pin. Roll dough to about 1/2 inch thick.
- Use cookie cutters to cut out shapes and place on cookie sheets.
- Bake for about 8–10 minutes, just before the edges start to brown.
- Let cool on a wire rack. (Makes about 32 cookies.)
Cream Cheese Frosting
- Beat the cream cheese and butter with a mixer for about 3 minutes, until completely smooth.
- Beat in the vanilla.
- Beat in the powdered sugar by the cupfuls until all combined.
- Once cookies are fully cooled, frost with a blunt knife or spatula and add sprinkles if you’d like.
- Refrigerate to set the frosting.
Notes
- Don’t skip the chill time — it makes the dough much easier to roll and cut.
- For softer cookies, pull them out right before the edges get too golden.
- If you want a thicker frosting layer, you can double the frosting recipe.
My favorite baking essentials:

You can keep these simple with a swipe of frosting and a few sprinkles, or turn them into a full decorating party with piping bags, different colors, and toppings. Either way, they’re soft, nostalgic, and so delicious.

💬 Tell me in the comments: Are you team soft sugar cookie or team crispy edges? And if you make these, what shapes and sprinkle combo did you go with?



