In a large bowl (or kitchen aid), cream butter, cream cheese, egg, sugar and both your almond and peppermint extract, until fluffy.
In a separate, smaller, bowl, combine flour, baking powder and salt. Add dry ingredients to creamed mixture. Stir until soft dough forms.
Taking care not to handle the dough too much, roll out and cut with cookie cuter. Thinner cookies with by crunchy, while thicket cookies will be soft and chewy.
Place on a greased pan, bake at 375 for 8-10 minutes. Let cool.
While baking, mix all frosting ingredients with hand mixer. Slowly add milk if frosting is too thick. Frost cooled cookies and, if desired, sprinkle with crushed candy canes. Enjoy!