Cream the fats and sweetener: In a large bowl, beat 1/2 cup softened butter with 2 tablespoons softened cream cheese and 2/3 cup keto granulated sweetener until light and fluffy, about 2–3 minutes.

Add egg and extracts: Beat in 1 large egg, 1 1/2 teaspoons vanilla extract, and 1/4 teaspoon almond extract (optional) until smooth.

Whisk the dry mix: In another bowl, whisk 2 cups blanched almond flour, 2 tablespoons coconut flour, 1/2 teaspoon baking powder, 1/4 teaspoon fine salt, and 1/4 teaspoon xanthan gum (optional).

Combine: Add dry ingredients to the wet ingredients and mix just until a soft dough forms. It should be slightly tacky but not sticky.

Chill: Shape dough into a flat disc, wrap, and refrigerate for 45–60 minutes. For cutouts, longer chilling (up to 2 hours) helps clean edges.

Preheat and prep: Heat oven to 350°F (175°C). Line baking sheets with parchment paper.

Roll or scoop: For cutouts, place dough between two sheets of parchment and roll to about 1/4 inch thick. Cut with cookie cutters and transfer to the sheet. For drop cookies, scoop 1 1/2 tablespoon portions, roll into balls, and gently flatten to 1/3 inch with your palm.

Bake: Bake 8–11 minutes, depending on size. Edges should look set and just beginning to turn golden. Centers may look slightly soft.

Cool: Let cookies cool on the sheet for 10 minutes to firm up, then move to a wire rack. Keto cookies are delicate when hot.

Optional glaze: Mix 3/4 cup powdered sweetener with 1–2 tablespoons heavy cream or almond milk and 1/2 teaspoon vanilla until smooth. Add food coloring if you like. Drizzle or dip cooled cookies. Top with sugar-free sprinkles.