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

In a large bowl with an electric mixer, beat the softened butter and granulated sugar on medium-high speed until the mixture is pale and fluffy, about 3 minutes.

Beat in the egg, vanilla extract, and almond extract (if using) until everything is well combined. Scrape down the sides of the bowl.

With the mixer on low, gradually add the dry ingredients to the wet ingredients in two or three additions. Mix just until combined—do not overmix. The dough will be soft.

Divide the dough in half, flatten each half into a 1-inch thick disk, and wrap tightly in plastic wrap. Chill in the refrigerator for at least 1 hour. This step is crucial for preventing spread and making the dough easy to roll.

When ready to bake, preheat your oven to 350°F (175°C). Line baking sheets with parchment paper. Lightly flour your work surface and rolling pin. Roll out one disk of dough to about ¼-inch thickness.

Use cookie cutters to cut out your desired shapes and carefully transfer them to the prepared baking sheets, leaving about 1 inch between them. Bake for 9-11 minutes, or until the edges are just beginning to turn a light golden brown. The centers should still look pale.

Let the cookies cool on the baking sheet for a few minutes before transferring them to a wire rack to cool completely. Cookies must be 100% cool before decorating.

In a small bowl, whisk together the powdered sugar and 2 tablespoons of milk. Add more milk, ½ teaspoon at a time, until you reach a smooth, pipeable consistency. Add food coloring if desired. Decorate the cooled cookies with icing and sprinkles.