1-First Step: Start by gathering all ingredients and ensuring your butter, cream cheese, and egg are at room temperature. This crucial step allows for proper incorporation and even mixing. Line two baking sheets with parchment paper and set aside.

2-Second Step: In a large mixing bowl, beat the softened butter and cream cheese together until completely smooth and creamy. This should take about 2-3 minutes on medium speed. The combination of these two ingredients creates the signature soft texture that distinguishes Lofthouse cookies from other sugar cookies.

3-Third Step: Add the granulated sugar to the butter and cream cheese mixture. Continue beating on medium-high speed for 3-4 minutes until the mixture is pale and fluffy. This process incorporates air into the dough, which helps create a lighter cookie texture. Scrape down the sides of the bowl as needed.

4-Fourth Step: Add the egg, vanilla extract, and almond extract to the mixture. Beat on medium speed until fully incorporated, about 1 minute. Scrape down the bowl again to ensure all ingredients are evenly distributed.

5-Fifth Step: In a separate medium bowl, whisk together the flour, baking powder, baking soda, and salt. This ensures the leavening agents are evenly distributed throughout the flour.

6-Sixth Step: With the mixer on low speed, gradually add the dry ingredients to the wet ingredients. Mix only until just combined. The dough will be soft and slightly sticky. Be careful not to overmix, which can develop gluten and make the cookies tough.

7-Seventh Step: Cover the bowl and refrigerate the dough for at least 1 hour, but 2-3 hours is ideal. This chilling period is essential for preventing the cookies from spreading too much during baking. It allows the flour to hydrate fully and the fats to firm up.

8-Eighth Step: Preheat your oven to 350°F (175°C). Use a cookie scoop or measuring spoon to portion dough into 2-tablespoon balls. Roll them between your palms to create smooth spheres and place them on the prepared baking sheets, spacing them about 3 inches apart.

9-Ninth Step: Gently flatten each dough ball with the palm of your hand or the bottom of a glass to create discs about 1/2 inch thick. For perfectly round cookies, rotate the dough ball as you press down.

10-Tenth Step: Bake for 9-11 minutes. The cookies are done when the edges are set but the centers still look slightly underbaked and pale. Avoid overbaking, as this will result in crispy cookies rather than soft ones.

11-Final Step: Allow cookies to cool on the baking sheets for 5 minutes before transferring to wire racks to cool completely. While cookies cool, prepare the frosting by beating butter until creamy, adding powdered sugar gradually, then mixing in vanilla, salt, and cream until smooth. Tint with food coloring if desired. Once cookies are completely cool, generously frost each one with an offset spatula and immediately add sprinkles before the frosting sets. Let frosting firm for 30 minutes before serving.