Preheat your oven to 350°F (180°C) and line a baking sheet with parchment paper.
In a mixing bowl, cream together the softened butter and sugar until light and fluffy.
Add the egg yolks and vanilla extract to the butter mixture, and mix until well combined.
Gradually add the flour to the mixture and continue mixing until a dough forms.
Shape the dough into small wreaths about 2 inches in diameter and place them on the prepared baking sheet.
Decorate the top of each wreath with sugar sprinkles or sliced almonds.
Bake the Berlinerkranser cookies in the preheated oven for about 12-15 minutes or until they are lightly golden.
Allow the cookies to cool on a wire rack before serving.
Enjoy!