01 - In a large mixing bowl, beat the softened butter and granulated sugar together using an electric mixer until the mixture is light and fluffy, approximately 2 to 3 minutes.
02 - Add the egg, vanilla extract, and almond extract if using, then beat until fully incorporated and the mixture is smooth.
03 - In a separate medium bowl, whisk together the all-purpose flour, baking powder, and salt until evenly distributed.
04 - Gradually add the dry ingredient mixture to the wet ingredients, mixing on low speed just until the dough comes together. Avoid overmixing to keep the cookies tender.
05 - Divide the dough into two equal discs, wrap each tightly in plastic wrap, and refrigerate for at least 1 hour until firm enough to roll.
06 - Preheat the oven to 350°F. Line baking sheets with parchment paper and set aside.
07 - On a lightly floured surface, roll out one disc of chilled dough to 1/4 inch thickness. Use cookie cutters to cut out desired shapes and carefully transfer them to the prepared baking sheets, spacing about 1 inch apart.
08 - Bake for 8 to 10 minutes, or until the edges are just beginning to turn golden brown. For softer cookies, pull them at 8 minutes; for a crisper bite, bake up to 10 minutes. Let the cookies rest on the baking sheets for 5 minutes before transferring to wire cooling racks.
09 - To make the icing, whisk the powdered sugar with milk or water, adding liquid gradually until a smooth drizzling consistency is reached. Tint with food coloring if desired. Decorate fully cooled cookies and allow the icing to set completely before serving or storing.