Preheat oven to 375 degrees F.
In a large bowl combine the sugar, butter, cream cheese, salt, almond, vanilla extracts and egg yolk. Beat until smooth.
Stir in flour, until well blended. Chill dough for 8 hours or overnight.
On a lightly floured surface, roll out the dough 1/3 at a time to 1/5 inch thickness. Refrigerate remaining dough until ready to use.
Cut into desired shapes with lightly floured cookie cutters. Place 1 inch apart on ungreased cookie sheet. Leave cookies plan for frosting or brush with slightly beaten egg white and sprinkle with candy sprinkles or colored sugar.
Bake for 7 to 10 minutes in the preheated oven or until light golden brown. Cool cookies completely before frosting.
It is very important to chill the dough, as it is too sticky to roll unless well chilled. Prep time approx. 15 minutes. Cook time approx. 10 minutes.