Gather and prep all your ingredients. Measure out the flour, baking powder, and salt in a medium bowl and whisk them together.

Cream the softened butter and granulated sugar together in a large bowl using an electric mixer on medium speed for about 3-4 minutes until light and fluffy.

Add the egg, vanilla extract, and almond extract to the mixture and beat until fully incorporated. Gradually add the dry ingredients and mix until just combined.

Divide the dough in half, wrap each portion in plastic wrap, and refrigerate for at least 30 minutes.

Preheat your oven to 350°F (175°C). Roll out the chilled dough to about ¼ inch thick and cut out tree shapes with cookie cutters. Place on prepared baking sheets.

Bake the cookies for 8-10 minutes until the edges are lightly golden. Let them cool on the baking sheets for about 5 minutes before transferring to a wire rack.

Mix the powdered sugar and milk until smooth to create icing. Once the cookies are cool, drizzle or spread the icing over them and sprinkle with colored sugar or sprinkles.

Allow the icing to set for about 30 minutes before serving.