In a bowl of a mixer fitted with the paddle attachment, combine butter and cream cheese and beat on medium-high until well combined and smooth.
Add confectioners’ sugar, baking powder, salt, and pumpkin spice, scraping bowl as you go.
Mix in egg and vanilla. It will look a little clumpy and curdled, but that’s ok, don’t freak out. Gradually add the flour.
Place dough onto a sheet of plastic wrap and wrap it up. Pat it gently into a rectangle. This will make it easier to roll out the dough after it’s chilled.
Place in refrigerator for at least one hour.
Preheat oven to 375 degrees F.
On a lightly floured surface, roll dough out until it is about 1/4-inch thick. Using cookie cutters, cut into the dough.
Place them onto an ungreased cookie sheet about 1 inch apart. Bake for 8-10 minutes until lightly golden.
Allow cookies to cool on baking sheet for a minute before transferring to a wire rack to cool completely.
In the pan of a double broiler or a bowl over a small pot of simmering water, place the white chocolate chips and shortening.
Stir the chips until everything is completely melted.
Spread a small amount on a cookie until it is covered to your liking. Sprinkle with sugar crystals.
Place a small amount of melted chocolate into a bowl and mix with the desired amount of food coloring.
Place small dots around the cookie and using a toothpick, swirl into the white chocolate. Allow cookies to set before serving.