In a large bowl, beat the butter and sugar with an electric hand-held mixer at low speed. Increase the speed to high and beat until creamy. ( The color will turn light yellow).
Add the egg and vanilla and beat at a low speed until well mixed.
Add the baking soda and 1 cup of the flour and beat until just blended. Add another cup of flour and beat until well blended. Add the third cup of flower and beat until just blended. You'll notice that this is where the mixture looks like "Sand". It will be in smaller pieces.
Add 1 Tablespoon of water to the dough and put your hands into the dough and push down. Try to get the whole thing to form into a ball. Add one more Tablespoon of water and mix into the dough well until the ball is evenly textured. Be careful with the water though, a little goes a long way!
Divide the dough into 4 equal pieces and roll each piece into a ball. Put each piece into a separate plastic bag and refrigerate the dough in the fridge for one hour or in the freezer for 20 minutes.
Preheat the oven to 350 degrees F.
Then take one of the balls out of the fridge or freezer. Knead the dough in your hands or on a clean surface until it becomes smooth and buttery.
On a lightly floured surface, or in between two sheets of parchment paper, roll the dough to about 1/8 of an inch thick (or however thick you like it). Use cookie cutters to cut the dough into shapes.
Roll the scraps of the dough into a ball and roll the dough out again. Cut shapes and keep rolling out the dough until you don't have enough to make shapes with.
Do this with all the refrigerated balls of dough. Then combine all the scraps together, roll it out and cut the dough into shapes with cookie cutters.
Place the cookies onto a cookie sheet and bake for 8-10 minutes (only put one cookie sheet into the oven at a time). Let the cookies cool on a wire rack. You'll be baking multiple batches of these.