In an electric mixer bowl combine the flour, sugar and salt on low speed until combined.
With the mixer on low, add one piece of butter at a time until combined. Add in vanilla and cream cheese. Mix on low until the dough begins to form large clumps.
Knead the dough by hand in the bowl for 3 minutes.
Turn the dough out onto the countertop and divide into 2 disks and wrap it with cling wrap. Let it rest in the fridge for at least 30 minutes.
Remove from fridge and cling wrap. Roll the dough out in between 2 pieces of parchment paper until it is around 1/8-1/4 inch thick.
Let it rest in the fridge for another 10 minutes.
After it has chilled, cut out your cookie shapes. For half of the cookies cut out a small hole in the center with a cookie cutter. Put them on baking sheet at least 1 1/2 inch apart. Put them back in the fridge for 10 minutes to rest.
Preheat the oven to 375 Fahrenheit and adjust your rack to the top position.
Bake the cookies for 10 minutes, rotating the tray halfway until they are golden brown.
Cool the cookies on a cooling rack.