Preheat the oven to 350 degrees and line 2 baking sheets with parchment paper.
Cream together the butter and both sugars until light and fluffy.
Add in 1 egg yolk at a time until combined.
Add in the vanilla and red food coloring.
Add in the dry ingredients and mix until just combined.
Scoop out 3 tbsp sized balls of cookie dough and place on the baking sheets.
Bake for 10-11 minutes until edges are set.
While the cookies bake, make the cream cheese buttercream.
Beat the cream cheese and butter on high until light and fluffy.
Add in the powdered sugar and vanilla. Mix until smooth.
Take half of the white frosting into a piping bag.
To the remaining frosting, add in 2-6 drops red food coloring until your desired shade of red is reached.
Place the red frosting into a piping bag.
Frost each cookie with white frosting to create an even base of frosting.
Pipe on a red santa hat to each cookie. Add a white ball to the top of the hat and white piping along the bottom of the santa hat.
Enjoy!