Preheat the oven to 350 degrees. Prepare a baking sheet with parchment paper.
Whisk together dry ingredients: flour, baking powder, and salt. Set aside.
In a mixing bowl, blend the butter and sugar until creamy and light. Add egg, almond extract, and vanilla extract. Mix well. Slowly add dry ingredients and mix until combined. Dough may be a little crumbly.
Turn out the dough onto a surface sprinkled with powdered sugar or flour. Press into a ball and then roll out to ¼ inch thickness. Use cookie cutters to create shapes. Carefully lift shaped cookies to the baking sheet. Using a flat spatula is recommended to help the cookies maintain their shape.
Bake cookies for 7 to 9 minutes. Do not brown the cookies. Allow cookies to cool for at least 20 minutes on the baking sheet before carefully removing to a cooling rack.
After cooling, decorate as desired. Allow icing to dry before storing in an airtight container between layers of parchment paper.