1. Line a large baking tray with baking parchment. In a bowl, beat the butter and sugar together until soft and creamy. Stir in the Vanilla Extract. Add the flour and stir into the creamed mixture, then bring together with your hands to form a firm dough, if the dough does not come together easily add a one teaspoon of water to the dough.
Place the dough on to a lightly floured surface and knead gently until smooth. Roll out to a thickness of ½ cm - the mixture will be quite short. Cut out the dough using various Christmas cutters (round and star cutters will work effectively if you do not have specific Christmas cutters).
Arrange the biscuits on the baking tray, spaced slightly apart, use a straw to cut a small hole in the top of each biscuit. Chill the biscuits in the fridge for 30 minutes, this will help stop the biscuits spreading. 10 minutes before baking preheat the oven to 190˚C (170˚C fan oven, 375˚F, gas 5). Bake for about 15 minutes until lightly golden. Cool for 5 minutes then transfer to a wire rack to cool completely.
Once the biscuits have cooled thread the string through the hole in each biscuits and tie to create a loop to hang the biscuits.
Mix together the icing sugar and water the create a smooth paste which is a pliable consistency. Place the icing into piping bag and cut the end of the piping bag to create a small hole.
Decorate the biscuits with the icing, writing icings and sprinkles to create festive Christmas biscuits.
Leave the biscuits to set and hang on your tree. To keep the biscuits fresh wrap each biscuit in cellophane and tie with a ribbon before hanging on the tree.