Hanukkah Cookies

Directions

• 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, 2 hours.
• 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 frosting, 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. Cover frosting with damp paper towels between uses.
• Pipe icing on cookies as desired. Let stand until set. Store in an airtight container.