In a large mixing bowl, beat together 1/2 cup of butter (softened), 1 teaspoon of vanilla extract, 1 large egg, and 8 ounces of cream cheese (softened) until the mixture is fluffy and well combined. This can be done using a hand mixer or a stand mixer on medium speed.
Gradually add a box of cake mix (any flavor of your choice) to the bowl with the wet ingredients. Blend until everything is well mixed and you have a smooth, consistent dough. The mixture might be a bit thick, but keep mixing until all the dry ingredients are incorporated.
Cover the bowl with plastic wrap or a kitchen towel and place it in the fridge. Allow the dough to chill for 30 minutes to 1 hour. This step is crucial as it helps the dough to firm up, making it easier to handle and shape later on.
Once the dough is chilled, remove it from the fridge. Roll the dough into small balls, approximately 1 inch in diameter. First, roll each ball in holiday sprinkles to get an even coating, then dip them in a bowl of powdered sugar. Roll the balls around until they are completely covered in powdered sugar.
Preheat your oven to 350°F (175°C). Place the coated dough balls on a baking sheet lined with parchment paper, spacing them about 2 inches apart. Bake in the preheated oven for 10-12 minutes, or until the edges of the cookies are lightly browned. Be careful not to overbake.
Once the cookies are done baking, remove them from the oven and let them cool on the baking sheet for about 5 minutes. This allows them to set slightly, making them easier to transfer. After cooling, transfer the cookies to a wire rack to cool completely. Enjoy your delightful holiday cookies!