Place the flour, baking powder, and salt into a medium bowl and mix until combined. Set aside.
Place the cold cream cheese in the bowl of a stand mixer and mix with the paddle attachment on low until soft and lump-free, about 1 minute. Add the room-temperature butter and sugar and cream just until combined. Scrape down the sides and bottom of the bowl with a spatula well.
Add the egg and vanilla and mix on low until completely incorporated. Scrape down the sides and bottom of the bowl again.
Add the dry ingredients and mix on low, slowly until the flour is completely incorporated. Then stop mixing.
Remove half of the dough and press it into a flat disk, it will be pretty soft. Wrap the disk in cling wrap and use a rolling pin to evenly flatten the dough. Do the same thing with the other half of the dough. Place them in the fridge for 30 minutes or until the dough is firm.
Preheat the oven to 350℉.
To roll out the dough, remove one disk from the fridge and remove the cling wrap. Lightly flour your countertop as well as one side of the dough. Place the dough flour side down and lightly flour the top of the disk.
Lightly flour the work surface. Roll the dough to about ½ -inch thickness. Using a large round cookie cutter or a wide-mouth glass cut the circles for the wreath out. Next, use a small round cookie cutter or the top of a glass bottle to cut the center of the wreath out.
Bake for 15-17 minutes. Let the cookies cool for 5 minutes before transferring to a wire cooling rack. Then allow to cool completely before icing. About 2 hours.
To make the icing add all of the ingredients to a large bowl and mix to combine.
Once mixed, dip each cookie into the icing and then place it back on the wire rack so any extra icing can drip off. Top with sprinkles.