Cut-Out Keto Sugar Cookies {Gluten & Dairy Free}

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These Gluten Free & Keto Sugar Cookies are soft in the center, have a slightly crisp edge, hold their shape, and have a choice of a sweet buttercream frosting or an icing that sets. 

Frosted Sugar Cookies On A Cooling Rack

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I am in LOVE with these keto sugar cookies!!! Here’s why I love them so much:

  • they are not bland in any way! Even though I love them with frosting, you can totally eat them without and still thorougly enjoy them
  • they are soft, tender, and buttery with a slight crunch on the edge
  • and lastly, they can be made ahead of time

2 keto sugar cookie versions

I have 2 versions for these cookies. The first version is similar to the beautiful soft Lofthouse sugar cookies sold at most grocery stores with the colorful frosting, sprinkles, and sold in a clear plastic container. They are soft and tender, but also have a slight crunch on the edge. They can be rolled into shapes, but they do slightly spread. If you stick to basic shapes, though, such as a circle, heart, star, candy cane, etc… they’ll be fine.

The second version is more of a typical cut-out sugar cookie. They aren’t as soft but they still have a good taste and texture and hold their shape perfectly when baking.

What’s the difference in the 2 cookies? 3/4 tsp. xanthan gum, that’s it! It’s only one small ingredient but it drastically changes the texture of cookies from a soft chewy cookie to one that is a bit firmer and holds a shape. As a point of reference, I used xanthan gum in the picture below (even though I slightly overcooked them, oooops!!) but didn’t use xanthan gum  in any of the other pictures.  It’s a bit hard to tell in the photos, but even though the cookies without xanthan gum spread, they still have a slight star shape.  I’ll let you decide if you want to add the xanthan gum or not. It depends on if you want more of a soft, Lofthouse style cookie or more of a perfectly shaped cut-out cookie to be decorated.

Sugar Cookies After Baking With Xanthan Gum

tips to make the perfect keto sugar cookie

I do have a few tricks to get a perfect sugar cookie:

  • Don’t over bake them! If you  them they will be crunchy and not soft and tender in the middle. You want to pull them out of the oven when the edges are just barely starting to brown and the center looks under baked. They will seem very soft when you first pull them out of the oven, but they will set up nicely once they cool.
  • Allow the dough to rest in the fridge or freezer until thoroughly chilled. If the dough isn’t chilled, it will be very hard to roll out and work with. Chilling also keeps the butter cold and prevents the cookies from spreading. If your dough starts to warm after you’ve rolled it a time or two, you can pop it in the freezer for just a bit to get it cold again.
  • Don’t roll them out too thin. If you roll them out too thin they will easily over-bake and become crunchy. They need to be around 1/4 inch thick, or even just a tad thicker when you roll them out to get a nice, soft, tender center.
  • Don’t frost them until they’ve completely cooled. If you frost them too soon the frosting will melt off!


easy keto sugar cookie steps

Creamed butter and sugar

Start by creaming together slightly softened (not melted!) butter and Monk Fruit Sweetener or Swerve Sweetener. Non-dairy butter, such as Earth Balance, will work fine if you’re dairy free.


Keto Sugar Cookie Dough

Beat in some vanilla, an egg, almond flour, coconut flour, baking powder, xanthan gum (if using), and salt until the dough comes together. Then, place it in a baggie or wrap it in plastic wrap and let chill in the freezer around an hour or the fridge at least 2 hours, or until thoroughly chilled.


Rolled Out Sugar Cookies With Stars Cut In The Dough

Place the dough on a piece of parchment paper, cover with plastic wrap, and roll out until about 1/4 inch thick or slightly thicker. Use cookie cutters to cut into shapes.


Cut Out Cookies On A Baking Sheet

Remove the excess dough from around the shapes and very carefully transfer to a parchment lined cookie sheet, leaving about 2 inches space between each cookie. You’ll want to leave just a bit more space then I did, I crammed as many as I could on my cookie sheet and a few of them baked together!

Repeat with remaining dough until all cookies are cut-out. Bake for 9-12 minutes, or until the edges are just staring to brown. Once cooled, eat as is or frost with buttercream frosting or an icing that sets and can be used to decorate with, it’s up to you. 💗💗

Sugar Cookies in a stack on a plate


Prefer Paleo? Check out my Honey-Sweetened Paleo Sugar Cookies and Snickerdoodle Cookies!

Looking for more Paleo & Keto desserts? Check these out!

Easy Fudge

Big, Soft Cinnamon Rolls

Keto Hot Chocolate Mix!

Cut-Out Keto Sugar Cookies {Gluten & Dairy Free}

These Gluten Free & Keto Sugar Cookies are soft in the center, have a slightly crisp edge, and have a choice of a sweet buttercream frosting or an icing that sets. 
*For grain free baking powder, combine 1 part baking soda with 2 parts cream of tartar and 2 parts potato, arrowroot, or tapioca flour
**I have also successfully made these using 1 1/4 Cup Blanched Almond Flour, NO coconut flour, 1/3 Cup of Arrowroot Flour, and 3/4 tsp. xanthan gum with the rest of the ingredients the same.
5 from 1 vote
Print Pin Rate
Course: dairy free, Dessert, keto, paleo
Cuisine: American
Keyword: frosted gluten free sugar cookies, frosted keto sugar cookies, frosted paleo sugar cookies, gluten free sugar cokies, Keto Sugar Cookies, low carb sugar cookies
Prep Time: 15 minutes
Cook Time: 9 minutes
Resting Time: 2 hours
Total Time: 3 hours 4 minutes
Servings: 18 depening on cookie cutters
Calories: 145kcal
Author: Cassidy

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  • 1 1/3 Cup Blanched Almond Flour super finely ground
  • 1 Tbsp Coconut Flour
  • 1/8 tsp Sea Salt
  • 1/2 tsp. Baking Powder*
  • 3/4 tsp xathan gum optional, makes cookies hold their shape and keeps them from spreading, however cookies will not be quite as soft
  • 1/4 Cup Butter, can use non-dairy such as Earth Balance slightly softened but not melted
  • 3/4 Cup Lakanto Sweetener or Swerve
  • 1 Large Egg room temperature
  • 1 tsp. Pure Vanilla

Buttercream Frosting:

  • 3/4 Cup Butter, can use non-dairy such as Earth Balance slightly softened but not melted
  • 3/4 Cup Lakanto Sweetener, powdered or Powdered Swerve
  • 1-2 Tbsp. non-dairy milk or as needed
  • 1 tsp. vanilla extract
  • Sprinkes, Food Coloring (natural of coarse!), and decorations as desired

Icing That Sets And Can Be Used To Decorate With:

  • 1 1/4 Cup Lakanto Sweetener, powdered plus more as needed
  • 1/2 tsp Pure Vanilla
  • 1 Tbsp. Room Temperature Water plus more as needed
  • Sprinkes, Food Coloring (natural of coarse!), and decorations as desired


  • Set out the butter and allow to rest until slightly softened.
  • Cream together the butter and sugar until it just comes together, about 30 seconds.
  • Add the egg and mix well. Then, add in the vanilla.
  • Add the almond flour, coconut flour, baking powder, salt, and xanthan gum (if using). Mix until dough comes together
  • Transfer to a plastic baggie or wrap in plastic wrap and place in freezer 45 minutes to an hour or the fridge for at least 2 hours, or until dough is thoroughly chilled. 
  • Preheat oven to 350 degrees.
  • Place the dough on a large piece of parchment paper and cover with plastic wrap. Use a rolling pin to roll dough around 1/4 inch thick or slightly thicker. 
  • Use cookie cutters to cut out shapes then remove the excess dough. Carefully transfer them to a parchment lined baking sheet, placing them about 2 inches apart. 
  • Bake 9-12 minutes, or until the edge of the cookies just barely start to brown. 
  • Transfer to a cooling rack to cool completely. Frost, if desired.


  • Beat together the softened butter and powdered Lakanto or Swerve Sweetener. Add the vanilla. Thin with non-dairy milk as needed. If you get it too thin add more powdered sugar. Frost and decorate cookies as desired.

Icing That Sets:

  • Whisk together all of the sugar cookie icing ingredients in a medium bowl. It should be thick, but if it's too thick add water as needed to thin. If you get it too thin add more powdered sugar to thicken. If not using right away, cover and keep in the fridge for up to 2 days. Icing sets and hardens after 2 days. 
Tried this recipe?Mention @CassidysCraveableCreations or tag #CassidysCraveableCreations!


Nutritional information includes buttercream frosting.
Nutrition Facts
Cut-Out Keto Sugar Cookies {Gluten & Dairy Free}
Amount Per Serving
Calories 145 Calories from Fat 126
% Daily Value*
Total Fat 14g 22%
Saturated Fat 6g 30%
Cholesterol 37mg 12%
Sodium 111mg 5%
Potassium 19mg 1%
Total Carbohydrates 18g 6%
Dietary Fiber 17g 68%
Protein 2g 4%
Vitamin A 6.6%
Vitamin C 1.8%
Calcium 1.1%
Iron 2.1%
* Percent Daily Values are based on a 2000 calorie diet.

Nutritional information is approximate and may vary.

pin keto sugar cookies for later:

 Keto Sugar Cookies - Pinnable Image

Posted December 5, 2018 by Cassidy in Desserts, Keto, Paleo / 29 Comments


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29 responses to “Cut-Out Keto Sugar Cookies {Gluten & Dairy Free}

  1. Kimberly

    I had pretty much given up on the keto cookie. I had just enough almond flour left to try this recipe. I made it with Swerve Granular and no xantham gum. The dough was wonderful to work with. I just rolled them into balls and made a thumbprint with the back of a measuring spoon and filled with jam. They smelled like cut out cookies I made as a little and my husband and I though finally, a winner! I plan to make a few batches of dough and freeze to bake when we want a treat. Thank you!!

  2. shelby

    I am so excited to try this recipe! Soft cookies (pre-keto) were my favorite. My Nanny always made soft cookies and frosted them when I was growing up and I’m so nostalgic about them because of that. I will be making these for Christmas Day to share with the loved ones in our home!

  3. Naomi

    Just wanted to say that I have made these cookies over 2 dozen times over the last three years and they have never failed me. Anyone who tries them, loves them! Wishing you and your family a Happy Holidays and Happy New Year!

  4. Hi Anonymous!

    I’ve have only used white sugar in this recipe (bad I know!) so I don’t know if coconut palm sugar will work or not. But I’d imagine it would work fine if you sift it and will probably just make the cookies a bit darker in color. If you use the coconut sugar let me know they turn out!


  5. Anonymous

    These look amazing! Can’t wait to try them as I haven’t had a good soft sugar cookie in a long time.

    I do however have one question. What type of sugar can we use for these? Will coconut sugar be ok or does it have to be literally, white sugar? Thanks!

  6. Thank you SO much for posting this. This is my first Christmas being gluten and dairy free and I wasn’t sure how I was going to make it without my sugar cookies. So THANK YOU! Your site has helped me out SO many times. 🙂

  7. Jen

    I can’t wait to try these with my kids over the Christmas holidays. They are going to freak out! I wonder if we could even use Christmas shaped cookie cutters… Thanks for sharing!

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