Blend butter and cream cheese. Add sugar and egg. Mix in remaining dry ingredients and blend into the creamed mixture. Chill for 1 hour. Roll out dough on floured surface until 1/4 inches thick (a must!) Cut with desired cookie cutter shape and bake at 375 for 8-10 minutes. Let cookies cool.
Mix all your frosting ingredients and add some food coloring if desired. For these apple cookies, I used Wilton's Leaf Green and Red Icing colors. Frost cookies when cool. Add any desired decorations. I used some red sanding sugar on the red frosting.
The key to making a good sugar cookie is to make sure that you cut the cookies thick enough and then don't over cook them!