Heat cream cheese in a large microwave safe bowl for 1 minute on 80 percent power in microwave to soften. Add sugar cookie mix, 1/4 cup flour, egg and extract. Stir with wooden spoon until dough is well combined and forms a ball.
Sprinkle a flat rolling surface with 1 tablespoon flour. Divide dough in half and roll out onto lightly floured surface using a rolling pin. Roll the rolling pin back and forth, turning the dough as needed so it does not stick. Roll dough to 1/4-inch thickness.
Take cookie cutter and dip cutting edge into a shallow bowl of flour. Then press cookie cutter into rolled out dough. Begin cutting out shapes at the center of the dough and work your way towards the edge, cutting shapes as close together as possible. Once the entire slab of dough is cut, use a small spatula to remove cookies from rolling surface and place on un-greased cookie sheet. Repeat with remaining half of dough.
Preheat oven to 350 degrees F.
Decorate each cookie by pressing mini candies into dough. Refrigerate cookies for 15 minutes to prevent spreading while baking.
Using oven mitts, place cookies in oven on top rack. Bake for 10 to 12 minutes. Remove from oven using mitts and let cool on cookie sheet for 1 minute before moving them to cooling rack.
Recipe courtesy Sandra Lee, 2007