Step 1: Prepare the Dough

1. In a medium bowl, whisk together flour, baking powder, baking soda, and salt.
2. In a separate large mixing bowl, cream the softened butter and sugar until light and fluffy (about 2 minutes).
3. Add the egg, vanilla extract, and almond extract (if using), mixing well to combine.
4. Gradually mix the dry ingredients into the wet ingredients, alternating with the milk. Continue until a smooth dough forms.

Step 2: Chill the Dough
Wrap the dough in plastic wrap or place it in an airtight container. Refrigerate for at least 1 hour (or up to 24 hours) to make it easier to roll out.

Step 3: Roll and Cut

1. Preheat the oven to 375°F (190°C). Line baking sheets with parchment paper.
2. Lightly flour a clean surface and roll out the dough to about ¼-inch thickness.
3. Use festive cookie cutters to cut out shapes like stars, trees, or snowflakes. Place the shapes 2 inches apart on the prepared baking sheets.

Step 4: Bake
Bake the cookies for 8-10 minutes, or until the edges are set but not browned. Allow them to cool on the baking sheets for 5 minutes before transferring to a wire rack to cool completely.

Step 5: Decorate

1. Mix the powdered sugar, milk, and extract of your choice to create the icing. Add food coloring to match the holiday theme.
2. Spread or pipe the icing onto the cooled cookies. Decorate with sprinkles, glitter, or sugar as desired. Let the icing set before serving or storing.