Preheat to 350°F (175°C). Grease an 8x8-inch pan or line with parchment.

Beat softened cream cheese, egg, and vanilla until smooth. Add powdered sugar if desired.

Press half the sugar cookie dough evenly into the pan.

Pour and spread the cream cheese mixture over the crust.

Tear remaining dough into pieces, flatten slightly, and scatter over the filling.

Bake 30 minutes, until golden and set. Tent with foil if browning too fast.

Cool 1 hour in the pan. Add sprinkles or dust with powdered sugar.

Cut into squares once fully cooled. Serve chilled or at room temp.