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Preheat oven to 325 degrees F Lightly grease cookie sheets.
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In a large bowl, cream together butter, cream cheese, and sugar until light and fluffy.
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Beat in egg yolk and vanilla.
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Stir in flour until well blended.
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Drop dough by spoonfuls onto cookie sheet (or use a cookie press). If desired, make an indentation in the center with your thumb or other object; fill with preserves, or press candy into center.
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Bake for 15 minutes in preheated oven.
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Cookies should be pale.