Preheat your oven to 350°F (175°C). This ensures that your cookies bake evenly.
In a large mixing bowl, beat together 1 cup of softened unsalted butter and 1 cup of granulated sugar using an electric mixer until the mixture is light and fluffy.
Add 2 large eggs, 1 teaspoon of vanilla extract, and 1 1/2 teaspoons of cake batter flavoring to the butter and sugar mixture. Mix until well combined.
In a separate bowl, whisk together 3 cups of all-purpose flour, 2 teaspoons of baking powder, and 1/2 teaspoon of salt (if using unsalted butter).
Gradually add the dry mixture to the wet mixture, mixing until just combined. Avoid overmixing to keep your cookies soft.
Gently fold in 1/4 cup of rainbow sprinkles until evenly distributed throughout the dough.
Using a cookie scoop, portion the dough onto a baking sheet lined with parchment paper. Leave some space between each cookie, as they will spread while baking.
Bake in the preheated oven for 10-12 minutes, or until the edges are lightly golden. The centers may look slightly underbaked, but they will continue to firm up as they cool.
Allow the cookies to cool on the baking sheet for about 5 minutes before transferring them to a cooling rack to cool completely.
In a medium bowl, beat together 4 ounces of softened cream cheese and 3 tablespoons of softened butter until smooth. Gradually add 2 cups of powdered sugar and 3 tablespoons of milk, mixing until the frosting is creamy. Stir in 1/2 teaspoon of cake batter flavoring for that extra kick.
Once the cookies are completely cool, spread a generous amount of frosting on top of each cookie. Finish with additional rainbow sprinkles for a festive touch!
