In the bowl of a stand mixer fitted with the paddle attachment, cream the butter and sugar together until light and fluffy, about 3–4 minutes.
Beat in the vanilla and egg until fully combined.
Add the flour, baking powder, and salt, mixing just until a soft dough forms.
Divide the dough in half. Tint one half with red food coloring and the other with green, mixing until evenly colored. If the dough feels too soft, refrigerate for 30 minutes.
Preheat the oven to 350°F. Line baking sheets with parchment paper.
Roll out each dough on a lightly floured surface to about ¼ inch thick. Cut into small squares using a cookie cutter and arrange on the prepared sheets.
Bake 8–10 minutes, until set but not browned. While still warm, use the square cutter to gently re-shape any cookies that spread for sharp edges. Cool completely on a wire rack.
To assemble, spread a thin layer of icing or frosting on one square and stack another cookie on top. Add a dab of frosting and top with a third cookie.
Using a small piping tip or ready-to-use icing tubes, pipe lines across the stack to look like ribbon wrapped around a present. Finish with a piped bow on top.
Let icing set completely before serving. Store in an airtight container for up to a week.
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