In the bowl of a stand mixer fitted with the whisk attachment, cream together 1 cup salted butter (softened), 1 1/4 cups granulated sugar, and 2 ounces cream cheese (softened) until light and fluffy, about 2–3 minutes. Add 2 tablespoons light corn syrup, 1 teaspoon vanilla extract, 1/4 teaspoon almond extract, and 1 large egg. Mix and scrape down the sides and bottom of the bowl as needed to ensure everything is fully incorporated.
Switch to the paddle attachment. Add 3 cups all-purpose flour, 1 teaspoon baking powder, 3/4 teaspoon salt, and 1/4 teaspoon baking soda. Mix on low speed until the dough comes together and no dry streaks remain.
Divide the dough into three equal portions. Leave one portion plain, wrap it in plastic wrap, and refrigerate. Add 2-3 drops red food coloring to one of the remaining portions and mix until the desired shade is reached. Repeat with the third portion using 2-3 drops green food coloring. Wrap each colored portion in plastic wrap and refrigerate for 1 hour.
Preheat the oven to 375°F (190°C). Lightly grease a baking sheet or line it with parchment paper.
On a lightly floured surface, roll out each portion of dough into a rectangle approximately 1/8-inch thick, aiming to make all sections the same size and shape. Stack the sections on top of each other, trimming the edges to create a clean rectangle. Save the trimmings for later use. Gently roll over the stacked dough with a rolling pin to help seal the layers together. Starting from one of the longer sides, roll the dough tightly into a log.
Slice the log into cookies about 1/4–1/2 inch thick. Place 1/2 cup sprinkles into a small bowl or spread on a small plate. Roll the edges of each cookie in sprinkles, pressing gently to adhere. Place the cookies about 1 inch apart on the prepared baking sheet.
Bake in the preheated oven for 10 to 12 minutes, or until the edges are set and the bottoms are lightly golden. Cool on the baking sheet for 2 minutes, then transfer the cookies to a wire rack to cool completely.
Store the cooled cookies in an airtight container at room temperature for up to one week.
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Notes
Alternate Sprinkle Method: Instead of rolling individual cookie slices in sprinkles, you can roll the entire dough log in sprinkles before slicing. Spread a generous layer sprinkles out on a clean baking sheet. Roll the log, pressing gently so the sprinkles adhere. This method provides even coverage but can be messier and uses more sprinkles.
Using a Hand Mixer: If you don’t have a stand mixer, a hand mixer can be used. Cream the butter, sugar, and cream cheese on medium speed, then reduce the speed to low when adding dry ingredients. Mix until combined but avoid overmixing. Use gloves to knead the food coloring into the dough, being careful to avoid staining.