In a mixing bowl, cream together the softened butter and cream cheese until smooth. Add the sugar, flour, and vanilla extract, mixing until well combined.
Drop rounded tablespoons of dough onto a baking sheet. Bake for 10-12 minutes or until the edges are lightly golden.
For the frosting, beat together the butter, powdered sugar, and milk until smooth. Add food coloring if desired.
Frost the cooled cookies and enjoy!
Notes
You can add food coloring to the dough or frosting for a fun twist.