Cream sugar, butter, cream cheese, salt, extract, and egg yolk until light. Add flour blending well. Chill dough several hours or overnight.
When ready to bake, preheat oven to 375°F.
Using a section at a time, roll dough to 1/8 inch thickness on a floured cloth. Cut into desired shapes and bake on an ungreased cookie sheet for 7-10 minutes or until light golden. Cool on rack.