White Velvet Cutouts

2 cups butter or margarine, softened
8 ounces cream cheese, softened
2 cups granulated sugar
2 egg yolks
1 teaspoon vanilla extract
4 1/2 cups all-purpose flour

Butter Cream Frosting

3 1/2 cups confectioners' sugar, divided
3 tablespoons butter or margarine, softened
1 tablespoon shortening
1/2 teaspoon vanilla extract
3 to 4 tablespoons milk, divided
Red and/or green food coloring*, optional

NOTE: For a deeper color of frosting, tint with food coloring paste available at kitchen and cake decorating supply stores or in the Wilton section at Wal-Mart.

In a mixing bowl, cream butter and cream cheese until light and fluffy. Add sugar, egg yolks and vanilla extract; mix well. Gradually add flour. Cover and chill 2 hours or until firm. Roll out on a floured surface to 1/4 inch thickness. Cut into 3-inch shapes; place 1 inch apart on greased baking sheets. Bake at 350 degrees F for 10-12 minutes or until set (not browned). Cool 5 minutes; remove to wire racks to cool.

Frosting: Combine 1 1/2 cups confectioner's sugar, butter, shortening, vanilla extract and 3 tablespoons milk in a mixing bowl; beat until smooth. Gradually add remaining sugar; beat until light and fluffy, about 3 minutes. Add enough remaining milk and food coloring until frosting reaches desired consistency. Frost cookies.

Yield: about 7 dozen.