Preheat your oven to 350°F (175°C) and prepare two baking sheets by lining them with parchment paper.

In a mixing bowl, combine 8 ounces of softened cream cheese and 1/2 cup of unsalted butter. Beat until smooth and creamy, then add one large egg and 1 teaspoon of vanilla extract.

Gradually add in a 15.25-ounce box of yellow cake mix and stir until a thick dough forms.

Gently fold in a handful of holiday sprinkles, ensuring colors do not bleed into the dough.

Cover the bowl with plastic wrap and refrigerate for at least 30 minutes.

Scoop the dough into 1½-inch balls and roll in powdered sugar, placing them a few inches apart on prepared baking sheets.

Bake for 10 to 12 minutes, watching for edges to set while centers remain soft.

Cool on baking sheets for about 5 minutes, then transfer to a wire rack to cool completely.