PREHEAT oven to 350°F. Beat cream cheese, butter, sugar and vanilla with electric mixer on medium speed until well blended. Add flour; mix well. Cover. Refrigerate 1 hour.
PLACE dough on floured surface; roll out to 1/8-inch thickness. Cut out with your favourite festive 2-inch cookie cutters, rerolling dough scraps as necessary. Place, 2 inches apart, on ungreased baking sheets.
BAKE 12 to 15 minutes or until edges are lightly browned. Remove from baking sheet; cool on wire racks. Decorate as desired.