Preheat oven to 350°F (175°C). Line baking sheets with parchment paper.
In a medium bowl, whisk together flour, baking powder, and salt. Set aside.
In a large bowl, cream together softened butter and granulated sugar until light and fluffy, about 3–4 minutes.
Beat in the egg, vanilla extract, and almond extract until well combined. If desired, add red or green food coloring to tint the dough.
Gradually add the dry ingredients to the wet ingredients, mixing on low speed until just combined. Do not overmix.
Divide dough into two equal portions. Roll each portion between parchment paper to about 1/4-inch thickness.
Use Christmas-themed cookie cutters to cut out shapes. Place cookies on prepared baking sheets, spacing them 2 inches apart.
Bake for 8–10 minutes, or until edges are lightly golden. Remove from oven and let cool on baking sheets for 5 minutes before transferring to a wire rack.
Once cooled completely, decorate with royal icing and sprinkles as desired. Allow icing to harden before storing.
Notes
Perfect for holiday gatherings or gift-giving. Store in an airtight container for up to one week.