Preheat your oven to 350°F (175°C) and line two baking sheets with parchment paper.

In a large mixing bowl, combine softened cream cheese and unsalted butter. Beat until smooth and creamy, about 2-3 minutes.

Add the large egg and vanilla extract to the mixture and continue mixing until well combined, about 1-2 minutes.

Gently fold in the yellow cake mix until a thick, sticky dough forms, avoiding overmixing.

If using, fold in holiday sprinkles to add a festive touch to the dough.

Portion out dough into 1 ½ inch balls and roll each ball in powdered sugar until well coated.

Bake cookies in the preheated oven for 10-12 minutes, until edges are set and centers are slightly puffy.

Allow cookies to cool on the baking sheets for about 5 minutes before transferring to a wire rack to cool completely.