1In large bowl, beat butter, cream cheese, sugar, vanilla and egg with electric mixer on medium speed until light and fluffy. Stir in flour and salt until blended. Cover and refrigerate dough at least 2 hours but no longer than 24 hours.
2Heat oven to 375°F. On lightly floured cloth-covered surface, roll 1/4 of dough at a time to 1/8-inch thickness. (Keep remaining dough refrigerated until ready to roll.) Cut dough with Santa cookie cutter; place about 1 inch apart on ungreased cookie sheets.
3Bake 7 to 10 minutes or until light brown. Immediately remove from cookie sheets to cooling racks. Cool completely. Frost cookies with red icing; sprinkle with red sugar crystals. Decorate as desired using white and blue icing. Add gum drop for belt buckle and cinnamon candy for nose.