Preheat oven to 350 degrees F and line baking sheets with parchment paper. In a large bowl with an electric mixer or stand mixer, cream together the butter and sugars until light and fluffy for a few minutes. Be sure to scrape down the sides of the bowl with a rubber spatula.
Add in egg, molasses, and vanilla extract and beat again until smooth.
In a medium bowl, whisk together the flour, baking soda, baking powder, and spices.
Add the flour mixture to the wet mixture and mix until dough has formed. Be sure not to over-mix.
Use a small cookie scoop equivalent to 1 1/2 tablespoons of cookie dough to form cookie dough balls. Bake cookies for 9-11 minutes or until the edges are a light golden brown. Let cool on the baking sheets for a few minutes, then transfer to a cool rack.
In the meantime, in a medium bowl beat together the cream cheese, powdered sugar, butter, cinnamon, and vanilla extract. Add milk to thin and beat again until smooth. Add more milk if the frosting seems too thick. Frost the tops of each cooled cookie and add Christmas sprinkles (optional). Enjoy!