The present invention relates to aqueous compositions comprising component (A) which comprises at least one water-soluble component comprising at least one functional group that undergoes a crosslinking reaction, preferably upon drying and/or heating; and component (B) which comprises at least one film-forming material. In particular the composition is a coating composition comprises: (A) at least one polyamidoamine-epihalohydrin resin; and (B) at least one material selected from flexibilizing materials, crosslink inhibiters and combinations thereof in an amount sufficient to impart a cuttability value of less than about 15 to a substrate coated with the coating composition. Component (B) is preferably at least one polymer comprising repeating units derived from an alkyl halide having at least one double bond and an alkene, such as ethylene vinyl chloride. Coated substrates such as coated building units, such as ceiling tiles and wall boards, as well as methods of producing such coated substrates are also provided.