Preheat the oven to 325°F (163°C) and line a baking sheet with parchment paper.
In a mixing bowl, beat the butter until light and fluffy.
Add the powdered sugar and continue beating until well combined.
Gradually add the flour and mix until a soft dough forms.
Stir in vanilla extract and mix well.
Scoop out small portions of dough and roll them into balls.
Place them on the baking sheet and gently press down with a fork.
Optionally, add sprinkles or chocolate chips on top for decoration.
Bake for 12-15 minutes or until edges are lightly golden.
Remove from oven, let cool, and enjoy!