In a large bowl cream the sugar, butter and cream cheese until light and fluffy. Beat in the egg yolk and extracts
Combine the dry ingredients in a separate bowl. Gradually add to the butter mixture.
Cover and chill for 3 hours, until dough is easy to roll.
On a lightly floured surface, roll out dough to about 1/8 inch. Cut out and bake at 375° for 8-10 minutes, until edges are starting to lightly brown.
Cool completely before decorating.