Cream the butter and sugar together in a large mixing bowl using an electric mixer until light and fluffy.
Add the egg and egg yolk, mixing until fully incorporated. Then mix in the almond and vanilla extracts.
In a separate bowl, whisk together the flour, baking powder, and salt. Gradually add to the wet ingredients, mixing until just combined.
Chill the dough covered with plastic wrap for at least 30 minutes.
Preheat the oven to 350°F (175°C) and line baking sheets with parchment paper.
Roll out the chilled dough on a floured surface to about ¼ inch thickness and cut out desired shapes with cookie cutters.
Bake in the preheated oven for 8-10 minutes or until the edges are lightly golden. Let cool on baking sheets for 5 minutes before transferring to a cooling rack.
Prepare the icing by mixing the powdered sugar, meringue powder, and enough water to create a smooth consistency.
Once cookies are cool, decorate with icing and add sprinkles for a festive touch.
