Hanukkah Cookies

Directions

1. In a large bowl, cream butter, cream cheese and sugar until light and fluffy, 5-7 minutes. Beat in egg and extract. Gradually beat flour into creamed mixture. Divide dough in half. Shape each into a disk; cover and refrigerate until firm enough to roll, about 2 hours.
2. Preheat oven to 350°. On a lightly floured surface, roll each portion of dough to 1/4-in. thickness. Cut with floured 3-in. cookie cutters. Place cutouts 1 in. apart on greased baking sheets. Bake until set (do not brown), 10-12 minutes. Cool on pans 5 minutes. Remove to wire racks to cool completely.
   For icing, in a small bowl, combine confectioners' sugar, water and meringue powder; beat on low speed just until combined. Beat on high 4 minutes or until soft peaks form. Divide icing into thirds. Tint 1 portion blue and 1 portion yellow; leave remaining portion white.
3. Pipe icing onto cookies as desired. (Keep unused icing covered at all times with a damp cloth. If necessary, beat again on high speed to restore texture.) Let cookies stand at room temperature several hours or until frosting is dry and firm. Store in an airtight container.