In a large bowl with a handheld mixer, or the bowl of a stand mixer fitted with the paddle attachment, cream together the butter, cream cheese, and brown sugar on medium-high speed until light and fluffy, about 2-3 minutes. Add the vanilla and almond extract (if using) and continue mixing until everything is combined, scraping down the bowl as necessary.
Turn the mixer speed down to low and add the flour and salt. Continue mixing until the dough starts coming together, then add the milk, turn the mixer speed up to medium, and blend until everything is completely combined.
Gather the dough and gently pat into a disc about 5-6" in diameter with your hands. Wrap in plastic wrap and chill in the refrigerator at least 2 hours and up to 3 days.
When you are ready to bake the cookies, preheat the oven to 350ºF. Line a large baking sheet with parchment paper or a silicone baking mat. Set aside and prepare the filling.
In a small bowl, mix together the cream cheese, powdered sugar, vanilla and almond extracts (if using), and salt. You should be able to do this with a spatula.
ASSEMBLE AND BAKE THE DOUGH
Unwrap your dough disc and roll out with a rolling pin on a lightly floured surface into an 8" disc. You can use your fingers to press the sides together to keep a uniform circle, if desired.
Pour the sprinkles evenly onto the surface of the dough. Use the rolling pin again to stretch the disc into a 9-10" disc.
Carefully flip the disc over so the sprinkles are now on the bottom. Spread the cream cheese filling evenly onto the non-sprinkle side of the dough, leaving about 1/2" of dough around the edge. Cover lightly with sprinkles.
Using a pizza cutter or sharp knife, carefully cut dough into 12 even triangles. Clean off pizza cutter or knife after every pass through the dough as it will get messy and sticky and become difficult to use.
When you are finished cutting the dough, roll each triangle up into a crescent-- starting with the longer edge, roll toward the point tightly but gently and seal the crescent with the tip of the triangle. Place rolled crescent with the tip of the triangle on the underside of the cookie on the baking sheet.
Bake the cookies for 25-27 minutes, or until lightly browned. Remove from the oven and allow to cool on a wire cooling rack until completely cool. Store leftovers at room temperature up to 3 days, or in the refrigerator up to 1 week. Rugelach freeze well, up to 2 months. Thaw in the refrigerator overnight.
*Almond extract is entirely optional in this recipe. I like to use it to give a more "cake batter" flavor. Adapted from What Jew Wanna Eat