Preheat the Oven: Preheat your oven to 350°F (175°C). Line two baking sheets with parchment paper or silicone baking mats and set them aside.
Mix the Dry Ingredients: In a medium-sized bowl, whisk together the flour, baking powder, and salt. Set aside.
Cream the Butter and Sugar: In a large mixing bowl, use an electric mixer to cream together the softened butter and granulated sugar until light and fluffy. This should take about 2-3 minutes.
Add the Egg and Extracts: Beat in the egg, vanilla extract, and almond extract (if using) until well combined.
Combine Wet and Dry Ingredients: Gradually add the dry ingredients to the wet mixture, mixing on low speed until a soft dough forms. If the dough is too sticky, add a little more flour, one tablespoon at a time, until it is manageable.
Chill the Dough: Divide the dough in half, shape it into two disks, and wrap them in plastic wrap. Refrigerate for at least 1 hour or until firm. Chilling the dough makes it easier to roll out and helps the cookies hold their shape during baking.
Roll Out the Dough: On a lightly floured surface, roll out one disk of dough to about ¼-inch thickness. Keep the other disk in the refrigerator until ready to use. Use your Christmas cookie cutters to cut out shapes, and place them on the prepared baking sheets.
Bake the Cookies: Bake the cookies in the preheated oven for 8-10 minutes, or until the edges are just beginning to turn golden. Be careful not to overbake them, as they should remain soft. Allow the cookies to cool on the baking sheets for a few minutes before transferring them to a wire rack to cool completely.
Decorate the Cookies: Once the cookies are completely cool, it’s time to decorate! Use royal icing, sprinkles, edible glitter, or any other decorations you like. Let the icing set completely before storing the cookies.
Enjoy and Share: Store the decorated cookies in an airtight container at room temperature. These cookies make for beautiful holiday gifts, or you can enjoy them with a cup of hot cocoa or coffee.