Using a stand mixer or hand mixer, beat the softened butter, cream cheese, and sugar together on medium speed until fluffy (about 2 minutes).

Add egg yolk and vanilla, beat until combined (about 1-2 minutes).

Gradually add the flour and beat on low speed until just combined (2 minutes).

Using your hands, gather the dough into a ball and flatten to a 1-inch thick disk.

Wrap in plastic wrap and chill for 30-60 minutes or as long as 1 day.

Remove from the fridge. Unwrap and place it on a lightly floured surface.

Roll out the dough evenly until it is approximately 1/8-inch thick. Use cookie cutters to cut out your desired shapes (You can re-roll the leftover dough as needed and re-cut. )

Preheat oven to 375°F (190°C). Line a baking sheet with parchment paper and set aside.

Unwrap the hard candies. Place each color into a separate ziplock bag, seal and crush into small pieces* by pounding gently with a rolling pin.

Transfer the cut cookie dough to a parchment-lined baking sheet. Bake for 6 minutes and remove from the oven.

Fill the centers of the cookies with crushed candies so they’re full in the center but not overflowing (remember the candies will shrink when baked). You can use a single color or combination for each cookie.

Bake for another 4-5 minutes until the candy has melted.

Let the cookies cool on the baking sheet until the candies have hardened completely.