Spread the flavored butter to about 1/4-in. thickness on a waxed paper-lined baking sheet and refrigerate until it's firm. Cut out butter using 1-in. cookie cutters in various festive shapes, such as trees, bells, candy canes, etc.
Transfer the cutouts to another waxed paper-lined baking sheet and refrigerate them until firm. Serve the butter at room temperature for easy spreading.