Preheat your oven to 350°F (175°C) and prepare baking sheets with parchment paper.
In a mixing bowl, combine softened cream cheese, butter, egg, and vanilla extract, beat until smooth.
Gradually stir in yellow cake mix until a thick dough forms.
Fold in holiday sprinkles gently.
Chill the dough in the refrigerator for at least 30 minutes.
Use a cookie scoop to portion dough into 1 ½-inch balls and roll in powdered sugar.
Bake for 10-12 minutes until edges are set but centers are soft.
Cool on the baking sheet for 5 minutes before transferring to a wire rack.
