Step 1: In a medium-sized bowl, whisk together the all-purpose flour, baking powder, baking soda, and salt until they are thoroughly combined. Set this dry mixture aside.
Step 2: In a large mixing bowl, using an electric mixer, cream together the softened unsalted butter and granulated sugar. Beat on medium-high speed for approximately 2-3 minutes, or until the mixture becomes light, fluffy, and visibly pale.
Step 3: Incorporate the large egg, vanilla extract, and the optional almond extract into the creamed butter and sugar. Continue to beat until all these wet ingredients are perfectly combined and the mixture presents a smooth consistency.
Step 4: Gradually add the prepared dry flour mixture into the wet ingredients. Mix on the lowest speed possible, just until the flour is fully incorporated and no dry streaks of flour are visible. Be careful not to overmix the dough.
Step 5: Divide the dough into two equal portions. Gently press each portion into a flattened disc shape, then wrap each disc tightly in plastic wrap. Refrigerate the dough for a minimum of 1 hour.
Step 6: Preheat your oven to 350°F (175°C). Line several baking sheets with parchment paper to prevent sticking.
Step 7: On a clean, lightly floured surface, unwrap one disc of the chilled dough. Using a rolling pin, roll the dough out to a uniform thickness of 1/4-inch. Cut out shapes with your favorite cookie cutters and carefully transfer them to the prepared baking sheets.
Step 8: Bake the cookies for 8-10 minutes. The edges should just begin to turn a very light golden color, while the centers should still appear slightly soft. This ensures a wonderfully soft texture.
Step 9: Once the cookies are baked, let them rest on the hot baking sheets for 5 minutes. Then, carefully transfer them to a wire rack to cool completely to room temperature.
Step 10: With your cookies fully cooled, it's time for decorating! Use your chosen icing and sprinkles to create edible works of art.