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

In the bowl of a stand mixer fitted with the paddle attachment (or using a hand mixer), beat the softened butter and granulated sugar together on medium-high speed for 3-4 minutes until light, pale, and fluffy. Scrape down the sides of the bowl.

Add the egg, vanilla extract, and almond extract. Beat on medium speed for another 1-2 minutes until fully combined and smooth.

Reduce mixer speed to low and gradually add the flour mixture in three additions, mixing just until a soft dough forms and no dry streaks remain. Do not overmix.

Divide the dough in half. Flatten each half into a disk about 1 inch thick, wrap tightly in plastic wrap, and refrigerate for at least 2 hours or overnight. This step is essential for crisp cut-out edges.

When ready to bake, preheat your oven to 375°F (190°C). Line two baking sheets with parchment paper.

Remove one disk of dough from the refrigerator. On a lightly floured surface, roll it out to an even ¼-inch thickness. Use rolling pin guides or rubber bands for consistency.

Cut out shapes with your holiday cookie cutters, pressing firmly and cleanly. Place cut-out cookies on the prepared baking sheets, spacing them about 1 inch apart.

Re-roll scraps once and cut again. For the crispest edges, place the entire baking sheet in the refrigerator for 10 minutes before baking.

Bake for 10-12 minutes, until the edges are just barely beginning to turn light golden. The centers will look slightly underdone — this is correct.

Remove from oven and let cookies cool on the baking sheet for 5 minutes before transferring to a wire rack. Cool completely before decorating — at least 1 hour.

In a large bowl, beat together the sifted powdered sugar, meringue powder, warm water, and vanilla extract with a hand mixer on medium-high speed for 5-7 minutes, until the icing is thick, glossy, and holds stiff peaks.

Divide the icing into bowls. Tint with gel food coloring as desired, mixing thoroughly.

For outlining: use the icing at this thick consistency, transferred to a piping bag fitted with a round #2 tip.

For flooding (filling): thin portions of icing with warm water, one teaspoon at a time, until a drizzled line disappears in about 10 seconds. Transfer to a piping bag or squeeze bottle.

Outline each cookie with thick icing and let the outline set for 2-3 minutes. Then flood the inside with the thinner icing, using a toothpick to spread it into corners and pop any air bubbles.

Add sprinkles or other decorations immediately while the icing is still wet. For detailed designs on top, let the flood layer dry for at least 2 hours before adding fine piped details.

Let all decorated cookies dry at room temperature, uncovered, for at least 6-8 hours or overnight until the icing is completely set and hard before stacking or packaging.