In a large bowl, cream together butter, cream cheese, white sugar, and brown sugar until smooth and fluffy, 3 to 4 minutes. Add in egg yolk, vanilla, and almond extract and beat for an additional 3 minutes. Add in flour, salt, baking powder, and nutmeg and mix until just combined.

Cover dough and refrigerate for 1 hour.

Line a cookie sheet with parchment paper. Pour 1/3 cup sugar into a bowl.

Remove dough from the refrigerator. Scoop out a 2 tablespoon-sized piece of dough; roll into a ball. Scoop out 1 tablespoon dough and roll into a ball. Gently press the larger ball and the smaller ball together until they stick slightly, trying not to flatten them too much. Place the snowman into the bowl of sugar and carefully roll to coat. Place snowmen 2 inches apart on the prepared baking sheet. Repeat with remaining dough until all snowmen are formed. Refrigerate snowmen for 30 minutes.

Preheat the oven to 350 degrees F (175 degrees C).

Bake snowmen in the preheated oven until cookies look set and begin to very slightly crack, 17 to 20 minutes. Allow cookies to cool completely on the baking sheet before removing.

Place dark chocolate chips in a microwave-safe bowl and microwave at 50% power in 30-second intervals until melted. Pour melted chocolate into a piping bag and snip a small hole in the end. Use the chocolate to pipe the eyes and mouth of each snowman. Then pipe three dots on the abdomen of the snowmen and attach holiday sprinkles.

Place white chocolate in a microwave-safe bowl and microwave at 50% power in 30-second intervals until melted. Add the orange gel coloring and mix until combined. Pour mixture into a piping bag and snip a small hole in the end of it. Pipe noses on each of the snowmen.

Pull a licorice stick apart into single strands. Wrap a single licorice strand around the neck of each snowman to form a scarf. Twist the strand once, then press it firmly together to slightly adhere (it will likely not stay stuck together, but you can keep pressing them back together as needed). Keep snowmen stored in an airtight container.