Begin by preheating the oven to 350°F.
Cream together the butter, cream cheese, and granulated sugar for 2 minutes.
Scrape the sides of the bowl and add the egg, vanilla and butter flavoring. Mix well.
Add the all-purpose flour and baking powder. Mix until a dough forms.
If the dough is really stiff or you have a hard time rolling out the dough without it cracking, you can mix in 1 tsp of water to the dough, as needed.
Roll the dough out, leaving the dough about 1/2 inch thick. Use a bunny cookie cutter to cut out the dough. Transfer to a parchment or silicone lined cookie sheet. Bake at 350°F for 8-10 minutes or until the cookies have puffed up slightly and no longer look glossy in the center.
Allow the cookies to cool on the pan before frosting.
To make the frosting, first whip the butter in a stand mixer or with an electric hand mixer for a full 15 minutes. The butter will become white and super fluffy.
Scrape the sides and mix in the powdered sugar. Whip until combined.
Now, add the vanilla and whip for an additional 1 minute.
Divide and color the frosting as you wish. Spread or pipe the frosting onto the cookies.
Pour the sanding sugar into a shallow dish or plate. Press the frosted cookie (frosting side down) into the coordinating color of sanding sugar.
Place 3 mini chocolate chips onto the bunny for the eyes and mouth.
Enjoy! Store in an airtight container for up to 3 days.