In a stand or hand held mixer, mix the sugar and butter together until fluffy. Add in the cream cheese and mix until smooth.
Add in the almond, vanilla, and egg yolk and beat until completely combined.
Slowly add in the flour and mix until just combined. Cover the bowl with plastic wrap and chill for a minimum of two hours or overnight.
Preheat oven to 375 F degrees.
Lightly flour a clean, flat surface. Roll out the dough to 1/3-1/2 inch in thickness. Cut the dough into desired shapes.
Place the cookies on an ungreased cookie sheet about 1 inch apart.
Bake for 7-10 minutes until the bottoms are very very light brown in color. Transfer the cookies to a cooling rack to cool completely before icing.
Cookies can be iced with royal icing or before putting them in the oven, brush the cookies with beaten egg white and sprinkle with colored sugar or candy sprinkles. Store cookies in an airtight container for up to a week.