Buttery Butterscotch Cut-Outs

1 cup butterscotch chips
1 cup butter, softened
3 cups flour
1/2 cup brown sugar
1/2 cup sugar
1 egg
2 tablespoons milk
2 teaspoons vanilla
2 cups powdered sugar
1/4 cup butter, softened
2 tablespoons milk
1 teaspoon vanilla

In a small saucepan melt butterscotch chips over low heat, stirring constantly, until smooth, about 3 to 5 minutes. In a large mixing bowl combine butterscotch, 1 cup butter, flour, brown sugar, granulated sugar, egg, 2 tablespoons milk, and 2 teaspoons vanilla. Beat with an electric mixer on low speed, scraping the bowl often, until well mixed, about 1 to 2 minutes. Divide dough in half and cover in plastic wrap. Refrigerate until firm, about 1 hour.

Preheat the oven to 375�F. On a lightly floured surface roll out dough, half at a time, to 1/8-inch thickness. Cut with cookie cutters and place 1 inch apart on baking sheets. Bake for 5 to 8 minutes, or until the edges are lightly browned. Transfer to a wire rack to cool. In a small mixing bowl cream powdered sugar, 1/4 cup butter, milk and vanilla. Beat at low speed until fluffy, scraping the bowl often, about 2 minutes. When cookies are cool, spread on frosting.

Makes 48