In a medium bowl, whisk together the flour, baking powder, and salt. Set aside.

In a large mixing bowl with an electric mixer (stand or hand-held), cream together the softened butter and granulated sugar on medium speed until light and fluffy, about 2-3 minutes. Scrape down the sides of the bowl as needed.

Beat in the egg, vanilla extract, and almond extract (if using) until just combined.

Gradually add the dry ingredient mixture to the wet ingredients, mixing on low speed until just combined and a soft dough forms. Do not overmix.

Divide the dough in half. Flatten each half into a disc, wrap tightly in plastic wrap, and refrigerate for at least 1 hour, or up to 2 days. This chilling step is crucial for preventing spread.

When ready to bake, preheat your oven to 350°F (175°C). Line two baking sheets with parchment paper or silicone baking mats.

On a lightly floured surface, unwrap one disc of chilled dough. Roll it out to about 1/4-inch thickness. Use more flour as needed to prevent sticking, but don't add too much.

Use cookie cutters to cut out desired shapes. Reroll scraps as needed, but try not to overwork the dough. For round cookies, simply slice the dough with a knife or use a round cutter.

Carefully transfer the cut-out cookies to the prepared baking sheets, leaving about 1 inch between them. Bake for 8-10 minutes, or until the edges are lightly golden and the centers are just set. Do not overbake if you want soft cookies.

Let the cookies cool on the baking sheets for 5 minutes before transferring them to a wire rack to cool completely. Repeat with the remaining dough.

While cookies cool, whisk together powdered sugar, milk, vanilla extract, and a pinch of salt in a small bowl until smooth. Add more milk/water 1 teaspoon at a time if too thick, or more powdered sugar if too thin. Add food coloring if desired.

Once cookies are completely cool, dip, drizzle, or spread the glaze over them. Add sprinkles immediately if using, before the glaze sets. Let the glaze set completely before stacking or storing.