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

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

Beat in the egg and vanilla extract, mixing until fluffy and well combined for about 1-2 minutes.

Gradually incorporate the yellow cake mix into the wet ingredients, stirring until a thick dough forms.

Fold in the holiday sprinkles, ensuring even distribution without overmixing.

Cover the bowl with plastic wrap and chill the dough in the refrigerator for at least 30 minutes.

Scoop tablespoon-sized portions of dough, roll into balls and coat generously with powdered sugar.

Place dough balls on prepared baking sheets, spacing about 2 inches apart, and bake for 10-12 minutes.

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