In a large mixing bowl, combine the softened unsalted butter and granulated sugar. Use a stand or hand mixer to beat until the mixture is light and creamy, with a pale color and smooth texture—about 2-3 minutes.
1 cup unsalted butter, 1/2 cup granulated sugar
Add the vanilla extract to the butter-sugar mixture and mix until incorporated. Gradually sift in the all-purpose flour, mixing on low speed until just combined, preventing overworking the dough.
1 teaspoon vanilla extract, 2 cups all-purpose flour
Fold in the chopped pistachios and dried cranberries using a spatula until evenly distributed throughout the dough, which should be crumbly but hold together when pressed.
1/2 cup chopped pistachios, 1/2 cup dried cranberries
Turn the dough onto a lightly floured surface and gently knead it into a uniform ball. Roll out the dough to about 1/4 inch thickness using a rolling pin, keeping an even surface.
Cut out cookies using a cookie cutter or knife, then place them on a parchment-lined baking sheet. Chill the outlined dough on the sheet for 10-15 minutes to firm up before baking.
Preheat the oven to 350°F (175°C). Bake the cookies for 12-15 minutes until they are lightly golden brown at the edges and firm to the touch. Remove from the oven and let cool on the sheet for 5 minutes before transferring to a wire rack to cool completely.