Preheat oven to 350°F. Line cookie sheets with parchment paper; set aside. In a large bowl beat 1/2 cup butter with an electric mixer on medium to high speed for 30 seconds. Add granulated sugar and beat until fluffy. Beat in egg, 1 teaspoon vanilla, and pumpkin until combined.
In a medium bowl stir together the flour, baking powder, baking soda, cinnamon, and salt. Add to pumpkin mixture and beat until combined. Gently fold in the cranberries, walnuts and orange peel.
Drop dough by rounded teaspoons 2 inches apart onto prepared cookie sheets. Bake about 10 minutes or until edges start to brown. Remove and cool on wire racks.
For frosting, in a small mixing bowl beat cream cheese with an electric mixer until smooth. Beat in powdered sugar, butter, and vanilla until combined and smooth. Spread frosting over cookies.