In a bowl, cream butter until smooth. Then add in the sugar and beat until fluffy. Add in eggs and vanilla and beat until well combined.
In another bowl, sift the dry ingredients together 3 times. (I just whisk it in the bowl.)
Add sour cream alternately with the dry mixture in thirds into the butter/sugar mixture. Chill dough for 2 to 3 hours.
Roll out and cut into shapes. Bake at 375 degrees for 6 to 8 minutes. Frost with the frosting.
For the frosting - Put butter in bowl and beat with electric mixer until fluffy. Then add about half the powdered sugar. Then beat in 1 Tablespoon milk and the vanilla. Slowly add in the rest of the powdered sugar. Add more milk if needed. Add food coloring if desired. The makes enough frosting to ice half of a cake mix, so I usually double the recipe.