- Preheat the oven to 350°F. Grease and flour a 9" square pan.
- In a large bowl, blend the sugar, molasses, water and butter, stirring until the butter melts. When the mixture is lukewarm, add the baking soda, salt, and egg.
- Sift together the flour and spices, and add to the wet ingredients. Gently stir in the crystallized ginger.
- Pour the batter into the pan, and bake the gingerbread for 25 to 28 minutes, or until it tests done with a clean skewer in the center.
- Remove from oven and turn out onto a wire rack. Allow to cool completely.
- While cooling, beat together the butter and cream cheese until smooth. Beat in the sugar and vanilla, then stir in the crystallized ginger. Apply icing as desired.