In a large mixing bowl, combine sugar, butter, cream cheese, salt, vanilla extract, almond extract, and egg yolk until well blended. Then add in the flour.
Scrape out the dough onto plastic wrap, wrap it up tight, and refrigerate for a minimum of 2 hours.
Preheat your oven to 375°F (190°C). Lightly flour your kitchen counter or a wood cutting board. Unwrap your cold dough, chop it in half with your bench scraper, and put half of the dough back in the plastic wrap to store in the refrigerator. Work with just one half of the dough at a time.
The dough will be firm at first but use your floured rolling pin to roll the dough out until it's about 1/4 inches thick.
Cut out shapes with your lightly floured cookie cutter. Place shapes on cookie sheet lined with parchment paper and decorate with sprinkles.
Bake in a 375°F (190°C) oven for 7-10 minutes (depending on cookie size and thickness) until the edge of the cookies are only barely browned.
Gather the leftover dough and repeat the process of rolling it out and cutting shapes to make cream cheese sugar cookies with the remaining dough. (Tip: Use your bench scraper to scrape up the shapes if they stick on your counter or cutting board.) After using the first half of the dough, get the rest of the dough out of the refrigerator and make more sugar cookies.