Drop by 1.5 tablespoon scoops onto prepared baking sheets, spacing the scoops 2 inches apart.
Bake for 8-12 minutes, or until the top springs back when touched.
Allow to cool for 5 minutes on the tray before transferring to a wire rack.
Let the cookies cool to room temperature before frosting.
To make the frosting, beat butter and cream cheese together until well-combined, about 3 minutes on high.
¼ cup butter, 8 ounces cream cheese
Add vanilla and powdered sugar.
1 teaspoon vanilla extract, 2 ½ cups powdered sugar
Mix on low for 30 seconds.
Increase speed to high, and continue to beat for 2 more minutes, scraping the sides as needed.
Spread the frosting on the cooled cookies.
Store cookies, covered, in the fridge.
Notes
Butter - I use salted butter. If using unsalted butter, add an additional 1/4 teaspoon of salt to the cookies an a pinch or two of salt to the frosting. Be sure that your butter isn't too warm. If it is, the cookies will spread too much as they bake.
Sour cream - I recommend using full-fat sour cream in this recipe.
Red food coloring - Red velvet bakery emulsion (a combination of red velvet flavoring and red dye) will also work.
All-purpose flour - It's important to properly measure the flour. Either weigh the flour or sift/stir it to break it up. Lightly spoon into the measuring cup and level.
Cream cheese - I recommend either full-fat or 1/3-less fat cream cheese.