Beat butter and sugar together until pale and fluffy, about 2 minutes.

Add egg, vanilla, and almond extract; beat on low just until smooth.

Whisk flour, baking powder, and salt, then mix into butter mixture in two additions until a soft dough forms.

Roll dough to 1/4-inch thickness on a floured surface, cut shapes, and transfer to a parchment-lined baking sheet.

Bake at 350°F (175°C) for 9 to 11 minutes, until edges are barely golden. Cool on the sheet 5 minutes, then transfer to a rack.

Cool completely, then decorate with icing or dust with powdered sugar.