**Prepare the Dough:** In a large bowl, cream together the softened butter and sugar until light and fluffy. Add the egg, vanilla extract, and almond extract (if using), mixing until combined.
**Combine Dry Ingredients:** In a separate bowl, whisk together the flour, baking powder, and salt. Gradually add the dry ingredients to the wet mixture, mixing until a soft dough forms.
**Chill the Dough:** Divide the dough into two portions, flatten each into a disk, and wrap in plastic wrap. Chill in the refrigerator for at least 1 hour.
**Preheat the Oven:** Preheat your oven to 350°F (175°C) and line baking sheets with parchment paper or silicone baking mats.
**Roll and Cut:** Roll out the chilled dough on a lightly floured surface to about 1/4-inch thickness. Use cookie cutters to cut out shapes and transfer them to the prepared baking sheets, spacing them about 1 inch apart.
**Bake:** Bake for 8-10 minutes, or until the edges are just starting to turn golden. Cool on the baking sheets for 2-3 minutes before transferring to a wire rack to cool completely.
**Decorate (Optional):** In a bowl, whisk together powdered sugar, milk, and vanilla extract to make the icing. Adjust consistency as needed. Add food coloring, if desired, and decorate the cooled cookies.