Prepare the Dough:
In a bowl, whisk together flour, baking powder, and salt. Set aside.

Mix Wet Ingredients:
In a large mixing bowl, beat butter and sugar together until light and fluffy. Add egg, vanilla extract, and almond extract, mixing until well combined.

Combine and Chill:
Gradually add the dry ingredients to the wet mixture, mixing until a soft dough forms. Divide the dough into two discs, wrap in plastic wrap, and refrigerate for at least 1 hour.

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

Shape and Bake:
Roll out the dough on a floured surface to about 1/4-inch thickness. Use an egg-shaped cookie cutter to cut out cookies. Place on prepared baking sheets about 1 inch apart.

Bake the Cookies:
Bake for 8-10 minutes, or until the edges are just starting to turn golden. Allow cookies to cool completely on a wire rack before decorating.

Make the Royal Icing:
In a bowl, whisk powdered sugar, meringue powder, and 4 tablespoons of water until smooth. Add more water, a teaspoon at a time, until the icing reaches a thick but pipeable consistency. Divide icing into bowls and tint with food coloring.

Decorate the Cookies:
Use a piping bag or a squeeze bottle to outline and fill in the cookies with icing. While the icing is still wet, add sprinkles or other decorations. Allow the icing to set completely (about 1-2 hours) before serving.