In large bowl, combine brown sugar, margarine, cinnamon, nutmeg, vanilla, salt, cream cheese and egg yolk; beat until light and fluffy.
Lightly spoon flour into measuring cup; level off.
Add flour to margarine mixture; mix well.
Cover; refrigerate dough 1 to l 1/2 hours for easier handling.
Heat oven to 375 °F.
On well floured surface, roll out 1/3 of dough at a time to 1/8 inch thickness.
Keep remaining dough refrigerated.
Cut out cookies using gnome pattern or floured 4 1/2 inch cookie cutter of desired shape.
Place cookies 1 inch apart on ungreased cookie sheets.
Lightly beat egg white in small bowl; brush over cookies.
Sprinkle cookies with colored sugar Bake at 375°F. for 6 to 8 minutes or until golden brown.
Cool 1 minute; remove from cookie sheets.
Cool completely.