In a stand mixer fitted with a paddle attachment, cream the butter, cream cheese, and sugar at medium speed until fluffy and pale (~5 minutes).

Add egg and extracts and mix until well incorporated. Add several drops of orange gel coloring and a couple of drops of red gel coloring until an intense orange color is achieved.

Transfer dough to plastic wrap, seal well, flatten slightly, and refrigerate at least two hours (but best to chill overnight)

Chill the cookies in the fridge for about 20 minutes (this will ensure that the cookies keep their shape while baking).
Preheat the oven to 350°F (177°C)

Bake cookies in the preheated oven for 10 minutes, rotating sheets halfway through baking.

Let cookies cool for -5 minutes before transferring them off of the cookie sheets. The cookies won’t be browned on the top, but will be slightly browned on the bottom, as shown.

Make the royal icing by combining the powdered sugar and meringue powder. Add water a little at a time and whisk well until a thick icing forms.

For chocolate, combine chocolate chips and shortening in a heat-proof bowl. Microwave in short (15 to 20 second) bursts, stirring well each time, until melted and smooth. Cool slightly.

Tips:
🐅 If the dough is excessively sticky at the mixing stage, add a little flour. If you add too much, the cookies will become crispier and less tender.

🐅 If you don’t have cake flour, you can make a substitute. Combine 14 Tablespoons (114 grams) all-purpose flour with 2 Tablespoons cornstarch and sift together.
You could also use all purpose flour instead of cake flour. The texture of the cookies may be a little crispier.

🐅 Black royal icing can be used instead of chocolate.