Beat the softened butter, creamy peanut butter, granulated sugar, and packed light brown sugar together for 2–3 minutes, until the mixture is light and creamy.

Beat in the eggs one at a time, mixing after each addition. Add the vanilla extract and mix until evenly incorporated.

In a separate bowl, whisk together the all-purpose flour, baking soda, baking powder, and salt. Gradually add the dry ingredients to the peanut butter mixture, mixing only until a soft dough forms.

Divide the dough into two portions and flatten each portion into a disk. Wrap the disks and refrigerate for 30–60 minutes.

Heat the oven to 350°F (175°C) and line baking sheets with parchment paper. Roll one chilled dough disk on a lightly floured surface to approximately 1/4-inch thickness.

Cut the dough with Christmas cookie cutters and transfer the shapes to the prepared baking sheets. Leave a little space between cookies so the edges bake evenly.

Bake for 8–11 minutes, until the edges are set and very lightly golden. The centers should still look slightly soft because the cookies continue to firm while cooling.

Cool the cookies on the baking sheet for 5 minutes, then transfer them to a wire rack. Cool completely before adding icing, chocolate, or sprinkles.