Prep: Preheat the oven to 375 degrees F. Line two baking sheets with parchment paper, or silicon mats, and set them aside.
Cookie dough: In a medium-sized bowl, stir together the cookie mix, butter, egg, cream cheese, and the red food coloring until all the ingredients are well blended.
Drop rounded tablespoons of cookie dough at least 2 inches apart onto the prepared baking sheets. Spray the bottom of a drinking glass with nonstick cooking spray and gently press down on the dough to flatten them into 2.5-inch diameter circles.
Bake: Place the cookies in the preheated oven and bake for 9-10 minutes. Let the cookies cool completely after baking, before topping with the frosting.
Cream cheese frosting: Beat the cream cheese and butter using an electric mixer, until the mixture is smooth and lump free.
Add in the powdered sugar, milk, and vanilla extract. Continue mixing until smooth.
Spread the frosting onto each cookie and top with holiday sprinkles, if desired. Serve cookies immediately and enjoy!