In large bowl, with mixer on medium-high, beat butter and sugar until fluffy, about 3 minutes. Add molasses and water; beat well. Reduce mixer speed to low, and beat in dry ingredients until combined. Shape dough into disk. Cover with plastic wrap, and refrigerate 1 hour.

Heat oven to 350 degrees F. Grease baking sheet. Roll dough to 1/8-inch thickness on floured surface. Using small reindeer shaped cookie cutter, cut out as many cookies as possible. Carefully transfer half of cookies to baking sheet, 1 inch apart. Bake 10 minutes, or until golden. Cool 1 minute; transfer 1/2 cup royal icing to resealable plastic bag. Snip small corner off bag. Pipe line for antlers on un-cooked cookies. Top icing with sprinkles. Dampen each reindeer's back with water, and place sprinkles on moistened area. Bake 10 minutes. Cool 1 minute, transfer cookies to wire rack, and cool completely.

To decorate: Tint 1/2 cup royal icing with red food coloring, and transfer to resealable plastic bag. Snip small corner off bag. Pipe wavy red line across reindeer, and add small dot for the nose. Using black tube icing, pipe eyes on reindeer.

Spread cream-cheese frosting onto plain baked cookies. Top each cookie with decorated one.

In a large bowl, with mixer on low, beat together 1 box (1 pound) confectioner's sugar, 2 tablespoons powdered egg whites and 5 to 6 tablespoons water until well combined. Increase speed to high, and continue beating until stiff peaks form. If not using immediately, press plastic wrap directly onto surface of icing and store in the refrigerator for up to 1 week (bring icing to room temperature before using). Tip: To make sprinkles stick to cookies, pipe icing onto unbaked cookies, top with sprinkles and bake as directed.