In a large bowl or the bowl of a stand mixer, beat 3/4 cup butter and 1/2 cup cream cheese until smooth.

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

Add 1 egg and 2 tsp vanilla extract. Mix until incorporated.

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

Add the flour mixture into the butter mixture in two additions, mixing until just incorporated.

Divide the dough in half and wrap each portion in plastic wrap. Chill the dough in the fridge for about 2 hours, or in the freezer for 30 minutes.

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

Roll out one piece of dough to 1/3 inch thick and cut out 2 1/2 inch circles. Place on prepared baking sheets.

Use a 3/4-inch circle cutter to cut out smaller circles for the ears and place two on the side of each larger circle. Press gently.

Chill cut-out cookies in the fridge for 15 minutes or in the freezer for 5 minutes.

Bake one sheet of cookies at a time for 12-14 minutes on the top rack, being careful not to brown the edges.

Transfer baked cookies to a wire rack to cool for about 15 minutes.

Knead cookie dough scraps, rewrap, and put back in the fridge to chill.

Repeat steps with the second portion of dough and scraps.

For the buttercream frosting, beat 1 cup of butter for 30 seconds until smooth.

Mix in 1 Tbsp vanilla and 1/2 tsp salt on low speed.

Gradually mix in 3 1/2 cups powdered sugar and 1/4 cup heavy cream. Adjust consistency as needed.

Place frosting into a piping bag and seal the top.

Once cookies are cooled, pipe a thin layer of frosting on top and press into sanding sugar.

Pipe a small oval on the bottom for the bear's muzzle, press a chocolate chip into it for the nose, and decorate with sprinkles for eyes and ears.