In a large bowl, combine the sugar, butter, cream cheese, salt, extracts and egg yolk. Beat until smooth. Stir in flour until well blended. Chill the dough for 8 hours or overnight.
Preheat oven to 375 degrees F (190 degrees C). On a lightly floured surface, roll out the dough 1/3 at a time to 1/8 minimum thickness. Keep dough refrigerated until ready to use. Cut into desired shapes with lightly floured cookie cutters. Place 1 inch apart on ungreased cookie sheet. Can brush with slightly beaten egg white and sprinkle with candy sprinkles or colored sugar.
Bake 7-10 minutes in preheated oven until lightly golden brown. Leave plain or frost when cooled.