Cream the butter till soft and creamy. If you have a standing mixer, this can be done using the creaming blade for a minute or if you are using your hands (I love to cream by hand because its so nice) put the butter on the shelf and move your hands in a round motion on the butter till about 2 minutes.
Add sugar to it and continue the same process till creamy and fluffy (You can use the normal mixie too, but I think the result would wary a little)
Put in the vanilla and the flour and mix untill just about incorporated to form a soft dough. Please note that the dough will be very soft.
Make a ball, wrap it in a parchment/butter paper and refrigerate it for at least an hour. I chilled it for about 2 hours and it worked well. This is a very important step here, if you skip this, you will not be able to handle the dough at all as will be too soft to roll or shape.
Take out a little amount of the dough, flatten it using a rolling pin or hand on a dusted surface.
Sprinkle some sugar candies on top of the rolled out dough and cut using the cookie cutter and place it on a lined cookie sheet, also remember to keep the dough back in the fridge. And try to minimize the reuse. It will be difficult to handle the second time round.
Keep the cookies for chilling for about 15 minutes so that they retain the shape while baking,
In the meanwhile, heat the oven at about 175C.
Bake the cookies in the center rack for about 8 minutes, allow them to cool and pack it off.