Sift together the flour, baking powder, and salt in a medium bowl, breaking up any lumps in the flour. Set this dry mixture aside. I always sift my flour before measuring because it gives me more accurate proportions and ensures the baking powder distributes evenly throughout the dough for consistent rise.

In a large bowl, combine the softened butter and 2 oz cream cheese, beating together until light and fluffy, about 2-3 minutes. Add the sugar gradually while continuing to beat, scraping down the bowl as needed. This creaming process incorporates air into the dough, which helps create tender cookies with a slight lift.

Add the egg, almond essence, vanilla essence, and ground nutmeg to the creamed butter mixture from Step 2. Beat well until fully incorporated and the mixture is smooth and well-combined. The almond essence adds a subtle flavor depth that makes these cookies taste more sophisticated than typical sugar cookies.

Gently fold the dry ingredient mixture from Step 1 into the wet mixture from Step 3 using a spatula or wooden spoon until just combined and no streaks of flour remain. Transfer the dough to a bowl, cover with plastic wrap, and refrigerate for 1 hour. Chilling firms up the dough so the cookies hold their shape better during baking and helps develop flavor.

About 15 minutes before the dough finishes chilling, preheat your oven to 350°F and line a baking sheet with parchment paper. Once the dough has chilled, scoop it into 2-tablespoon portions and roll each into a smooth ball, placing them about 2 inches apart on the prepared baking sheet. You should get about 24-30 cookies depending on size.

Bake the cookies for 14-15 minutes, until the edges are just barely golden but the centers still look slightly underdone—this is the secret to keeping them soft and tender. Remove from the oven and allow the cookies to cool on the baking sheet for 5 minutes, then transfer to a wire rack to cool completely before frosting.

While the cookies cool, prepare the frosting by beating together the 4 oz cream cheese and 6 tablespoons butter until creamy and smooth. Gradually add the sifted confectioners sugar, beating until fluffy, then add the vanilla essence and green food coloring, mixing until the color is even and vibrant. Spread a generous amount of frosting onto each cooled cookie and immediately top with white sprinkles before the frosting sets. I use Philadelphia full-fat cream cheese for frosting because it has the richest, smoothest texture that spreads beautifully without cracking.