1. Make the Dough:

1. In a large bowl, cream the softened butter and sugar together with a hand or stand mixer until light and fluffy, about 2-3 minutes.
2. Add the egg, vanilla extract, and almond extract (if using). Mix until combined.
3. In a separate bowl, whisk together the flour, baking powder, and salt. Gradually add the dry ingredients to the wet ingredients, mixing until a soft dough forms.

2. Chill the Dough:

1. Divide the dough in half and flatten each portion into a disc. Wrap in plastic wrap and refrigerate for at least 1 hour (or up to 24 hours).

3. Roll and Cut:

1. Preheat your oven to 350°F (175°C). Line baking sheets with parchment paper or silicone baking mats.
2. On a lightly floured surface, roll out one disc of dough to about 1/4-inch thickness.
3. Use cookie cutters to cut out shapes, and transfer them to the prepared baking sheets, spacing them about 1 inch apart.

4. Bake:

1. Bake for 8-10 minutes, or until the edges are just starting to turn golden.
2. Let the cookies cool on the baking sheet for 5 minutes, then transfer to a wire rack to cool completely before decorating.

5. Make the Royal Icing (Optional):

1. In a bowl, whisk together the powdered sugar and meringue powder.
2. Add water 1 tablespoon at a time, mixing until the icing reaches your desired consistency (thicker for piping, thinner for flooding).
3. Divide the icing into bowls and add food coloring as desired.

6. Decorate the Cookies:

1. Use piping bags or a spoon to decorate the cooled cookies with icing. Add sprinkles, colored sugars, or edible glitter for festive touches.
2. Allow the icing to set for 2-3 hours before stacking or storing.