Yield: 5 dozen cookies
Preheat oven to 375 degrees F
Combine flour, baking powder, salt and nutmeg; set aside.
Cream together butter and shortening; add cream cheese and sugar beating until fluffy. Add egg and vanilla; beat well. Gradually beat in flour mixture.
Divide dough in half. Cover and chill 1 to 2 hours.
On lightly floured surface, roll dough 1/8- inch thick. Cut with cookie cutters. Place on ungreased baking sheet.
Bake for 7 to 9 minutes. Cool on wire rack. Frost as desired.
Cookies can be baked ahead and frozen, then frosted at a later date.
Please note that some ingredients and brands may not be available in every store.