In a medium bowl, whisk together the flour, baking powder, and salt. Set aside.

In a large mixing bowl, cream together the softened butter and granulated sugar using an electric mixer until light and fluffy, about 3-5 minutes.

Beat in the egg, vanilla extract, and almond extract (if using), mixing until combined.

Gradually add the dry ingredients to the wet mixture, blending on low speed until the dough comes together. Do not overmix.

Divide the dough in half, wrap each half in plastic wrap, and refrigerate for at least 1 hour until firm.

Preheat your oven to 350°F (175°C). Line baking sheets with parchment paper.

On a floured surface, roll out one portion of dough to about ¼-inch thickness. Use cookie cutters to cut out desired shapes.

Place the cutout cookies on the prepared baking sheets, leaving space between them.

Bake for 8-10 minutes, or until the edges are lightly golden. Keep an eye on them to prevent overbaking.

Allow cookies to cool on baking sheets for a few minutes before transferring them to a cooling rack to cool completely.

If desired, mix powdered sugar with milk to create a frosting. Divide into bowls and add food coloring for decoration.

Frost cooled cookies and top with sprinkles.