Preheat the oven to 350 degrees F and line two baking sheets with parchment paper.

In a large bowl, beat together the softened cream cheese, butter, egg, and vanilla extract with an electric mixer until smooth.

Stir in the cake mix until a thick dough forms.

Gently fold in holiday sprinkles, being careful not to overmix so the color of the sprinkles doesn’t bleed into the dough.

Chill the dough for at least 30 minutes to make it easier to handle.

Scoop out the dough into 1 ½-inch balls and roll them in powdered sugar until fully coated.

Place the dough balls on the prepared baking sheets, about 2 inches apart, and bake for 10-12 minutes, until the edges are set but the centers still look slightly soft.

Let the cookies cool on the baking sheet for a few minutes before transferring them to a wire rack to finish cooling.