Cream the salted butter, cream cheese, xanthan gum, and powdered sweetener for 5-7 minutes. Cream these ingredients for the entire length of time as it ensures a very light and fluffy cookie. Ensure all the ingredients are at room temperature, especially the butter and cream cheese, to aid in this process.
Next, add in the almond flour, kosher salt, and vanilla extract. Then beat the almond flour in for 2-3 minutes. Gently fold in the sugar-free sprinkles until well combined.
Divide the dough in half and wrap each in plastic wrap. Form each into a disk shape and chill for 30 minutes to one hour. You want to make sure the dough is properly chilled as the dough is sticky.
Preheat an oven to 350 F. Once the dough is chilled, roll each dough out into a ¼” thickness in between two pieces of parchment paper. Then cut the dough using a 2 to 2 ½” round or scalloped edge circle cookie cutter. Place the cookies on a parchment paper-lined baking sheet.
Chill the baking sheet with the cookies on for 10 minutes. Then bake the cookies for 8-9 minutes until puffed and very lightly golden brown. Allow them to cool most of the way on the cookie sheet, then remove them to a cooling rack.