Cream together 1 cup of softened unsalted butter and 1 cup of sugar until fluffy, about 3-5 minutes. Beat in 1 egg and 1 teaspoon each of vanilla and almond extracts.

In a separate bowl, whisk together 2 ½ cups of all-purpose flour, 1 teaspoon of baking powder, and ½ teaspoon of salt. Gradually incorporate the dry mixture into the butter mixture.

Shape the dough into a ball, wrap in plastic wrap, and chill for at least 1 hour.

Preheat oven to 350°F (175°C). Roll dough out to ¼ inch thick, cut into shapes, and place on a parchment-lined baking sheet. Bake for 8-10 minutes until edges are lightly golden.

Transfer cookies to wire racks to cool completely, about 15-20 minutes.

Prepare royal icing by mixing 2 cups of powdered sugar, 1 tablespoon of meringue powder, and about 5 tablespoons of water until smooth.

Once cookies are cool, apply royal icing with a piping bag and decorate with sprinkles.

Allow cookies to dry for 4-6 hours or overnight.