In a separate bowl, combine butter, sugar and vanilla. Add in dry ingredients gradually.
Divide dough in half and use waxed paper or parchment paper to form rolls (about the size of a half-dollar in diameter).
Chill in freezer until hard (about 30 minutes).
Preheat oven to 350*F. Cut into 1/8 to ¼ inch rounds and bake 12 minutes.
Once cooled completely, dip cookies in or drizzle with melted white chocolate. Be careful as these cookies tend to be fragile. Sprinkle with red and green sugar if desired to make them more Christmas-y.