Begin by creaming together butter, oil, sugars, water and eggs in your mixer. Mix for a few minutes until well combined.
In a separate bowl, combine dry ingredients and slowly add to butter mixture.
Mix all ingredients until they are well combined. Dough should not be sticky.
Roll dough into 1.5 inch balls and place on a greased cookie sheet.
To give the cookies their cracked edges, place ¼ cup sugar and a pinch of salt in a separate bowl. Place the bottom of a glass into this mixture and then press it onto your ball of dough. The diameter of the bottom of the glass I used was 2.5 inches.
Press cookies until they are a bit wider than the glass bottom diameter (my cookies were about 3 inches in diameter) and cook at 350°F for 8 minutes. Cookies end up being about 3.5 inches in diameter after being baked.
Let cool and place in fridge.
For the frosting mix butter, sour cream, powdered sugar, salt, 1 drop food coloring and almond extract. Mix well and add the desired amount of milk you want to get it the thickness you want. I only added a few tablespoons.
Spread frosting on cookies right before serving.