To make cookies, in a large bowl, cream butter, sugar, and cream cheese until light and fluffy, about 2 minutes. Mix in egg, vanilla, and milk until combined. Add dry ingredients and mix on low speed until combined. Wrap dough in plastic wrap and chill in the refrigerator for at least an hour or up to one day.Preheat oven to 375 degrees F.
Divide dough into smaller sections. Roll out one section to an 1/8 inch thickness on a floured surface. Cut out shapes with a slipper-shaped cookie cutter. Gather
dough scraps and roll out again. Place cutout cookies on an ungreased baking sheet and bake 7 to 10 minutes. Let cookies rest on hot baking sheets after removing from ven for 10m inutes. Cookies shouldn't brown.
Remove to wire racks to cool completely, then frost with Cream Cheese Frosting.
To make frosting, beat cream cheese, powdered sugar, and vanilla with an electric mixer until light and fluffy, 3 to 4 minutes. If desired, tint frosting with a few drops of red food coloring. Decorate the cookies with tiny candies.
