In a mixing bowl, cream together the softened butter and granulated sugar until light and fluffy.

Beat in the egg, vanilla extract, and almond extract until well combined.

In another bowl, whisk together the flour, baking powder, and salt.

Gradually add the dry ingredients to the wet ingredients, mixing until a dough forms.

Wrap the dough in plastic wrap and refrigerate for at least 1 hour.

Preheat the oven to 350°F (175°C).

Roll out the chilled dough on a floured surface to about 1/4 inch thick.

Use cookie cutters to cut out shapes and place them on a baking sheet lined with parchment paper.

Bake for 8-10 minutes or until the edges are lightly golden.

Allow cookies to cool on a wire rack.

Once cooled, decorate the cookies with royal icing and sprinkles to create festive designs.