In a large stand mixer fitted with the paddle attachment, beat the softened European butter and granulated sugar together on medium speed for 2 to 3 minutes until smooth and fluffy.

Add the egg, vanilla extract, and almond extract. Beat until thoroughly combined.

In a separate bowl, whisk together the flour, baking powder, and salt. Add to the wet ingredients in two additions, mixing on low speed just until a soft, cohesive dough forms and pulls away from the sides of the bowl. Do not overmix.

Preheat oven to 350°F (175°C). Line two large baking sheets with parchment paper.

Divide dough in half. Roll out one portion on a lightly floured surface to 1/4-inch thickness (thicker cookies ensure a soft, tender bakery bite). Cut into festive holiday shapes (stars, snowflakes, trees) with floured cutters. Transfer shapes 1 inch apart to baking sheets. Re-roll scraps once.

Bake for 9 to 11 minutes just until the edges are set and bottoms are very pale golden (do not let tops brown). Cool on the pan for 5 minutes, then transfer to a wire rack to cool completely before decorating.

In a clean bowl, beat powdered sugar, meringue powder, warm water, and clear vanilla on low speed for 1 minute, then high speed for 4 to 5 minutes until stiff, glossy peaks form.

To create flooding consistency: stir in warm water 1/2 teaspoon at a time until the icing smooths out within 15 seconds of drizzling. Divide into bowls and tint with gel food coloring. Transfer to piping bags fitted with small round tips (or snip a tiny corner).

Outline cookies with icing, then fill the center (flood) and smooth with a toothpick or scribe tool. Add sprinkles immediately while wet. Let dry at room temperature for 4 to 6 hours until completely firm and stackable!