• Preheat the oven to 375°F. Lightly grease a cookie sheet and set aside.
• Cream butter, cream cheese, granulated sugar, powdered sugar, almond extract, vanilla extract and egg in a large bowl or stand mixer until fluffy.
• In a medium bowl, combine flour, baking powder and salt.
• Add dry ingredients to the creamed mixture and stir until a soft dough forms.
• Roll the dough on a lightly floured surface to about ⅜ inch thick. Cut with cookie cutters, then gently gather and re-roll the scraps as needed. Avoid adding too much extra flour or repeatedly working the dough, which can make the cookies tougher. If the dough becomes too sticky to work with, chill it for about 20 minutes.
• Cut with cookie cutters (or the top of a cup). Bake for 9 to 12 minutes, just until the cookies are set and still pale. The edges should not be browned, and the centers may still look slightly soft. Let the cookies sit on the baking sheet for a few minutes before transferring them to a wire rack to cool completely.

Frosting

• Mix 4½ cups powdered sugar, ⅓ cup softened unsalted butter, ¼ cup milk, ½ teaspoon vanilla extract, and ½ teaspoon almond extract until smooth. Add more milk a little at a time as needed to reach a spreadable consistency. Add food coloring if desired.
• Once the cookies are completely cool, spread or pipe on the frosting. Add sprinkles right away so they stick before the frosting begins to set. Let the frosting set before storing the cookies.