In a large bowl, beat 3/4 cup butter and 1/2 cup cream cheese until smooth.

Add 1 1/2 cups granulated sugar and mix until lighter in color.

Mix in 1 large egg and 2 tsp vanilla extract until incorporated.

In a separate bowl, whisk together 3 cups flour, 1 Tbsp cornstarch, 1/2 tsp baking powder, and 1/2 tsp fine salt.

Gradually add the flour mixture to the butter mixture, mixing until just incorporated.

Divide dough in half, wrap in plastic wrap, and chill for about 2 hours.

Preheat oven to 350°F (175°C) and line baking sheets with parchment paper.

Roll out one piece of dough on a floured surface to 1/3 inch thick and cut out 2 1/2 inch circles.

Cut out smaller circles for the ears using a 3/4-inch cutter.

Place two small circles on each large circle to form bear ears and press down gently.

Chill cut-out cookies for 15 minutes.

Bake cookies for 12-14 minutes, until edges are barely golden. Let cool for 15 minutes on the pan, then transfer to a wire rack.

Beat 1 cup butter for frosting on medium speed until smooth, then mix in 1 Tbsp vanilla and 1/2 tsp salt.

Gradually add 3 1/2 cups powdered sugar and 1/4 cup heavy cream until desired consistency is reached.

Transfer frosting into a piping bag and seal.

Once cookies are cooled, pipe a thin layer of frosting on each cookie, then dip in sanding sugar.

Pipe a small oval on the cookie for the bear's muzzle and press a chocolate chip for the nose.

Use black sprinkles for the eyes and red or pink sprinkles for the ears.

Repeat until all cookies are decorated.