Preheat your oven to 350°F (175°C) and line two baking sheets with parchment paper.

In a large mixing bowl, combine cream cheese, unsalted butter, egg, and vanilla extract. Beat until smooth and creamy.

Gradually add in the yellow cake mix and mix until a thick dough forms.

Fold in the holiday sprinkles gently.

Cover the dough with plastic wrap and chill in the refrigerator for at least 30 minutes.

Using a cookie scoop, portion the dough into 1.5-inch balls and roll in powdered sugar.

Place the dough balls on the baking sheets, spacing them 2 inches apart.

Bake for 10-12 minutes, until the edges are set but the centers are soft.

Let the cookies cool on the baking sheet for 5 minutes before transferring to a wire rack.