Add in the 1 cup butter, 1/4 cup plus 3 tablespoons powdered sugar, 1/4 cup granulated sugar, and 1/2 teaspoon vanilla extract to a large bowl. Using a hand mixer, beat on medium until combined.
Add the 2 1/3 cups all-purpose flour and 1/4 teaspoon salt. Beat until the flour is incorporated and continue to beat until the dough can be pinched together and hold its shape.
Divide the dough into two and shape each piece into a flat disc.
Wrap the two cookie dough discs individually in plastic wrap and refrigerate for at least 30 minutes.
Preheat the oven to 350 degrees F. Line a cookie sheet with parchment paper.
Roll the dough out to 1/2 inch to 1/4 inch thickness on a lightly floured surface.
Using cookie cutters, cut out the cookies and place on the prepared cookie sheet.
Place in the preheated oven and bake for 10 to 14 minutes or until the edges are golden brown.
Let the cookies cool for 5 to 10 minutes on the cookie sheet before transferring to a wire rack or paper towel to cool completely.
Store in an airtight container at room temperature.
Notes
Storage: Store in an airtight container at room temperature for up to 5 days.