Cream the butter and sugar: In a large bowl, beat butter and sugar on medium speed until light and fluffy, about 2–3 minutes. Add the egg and extract(s). Mix until smooth.

Combine dry ingredients: In a separate bowl, whisk flour, baking powder, and salt. Add to the butter mixture in two additions, mixing on low just until combined. The dough should hold together without being sticky.

Chill the dough: Divide dough into two discs, wrap, and chill for 45–60 minutes. This helps prevent spreading and makes rolling easier.

Roll and cut: Preheat oven to 350°F (175°C). On a lightly floured surface, roll dough to about 1/4 inch thick. Cut shapes and place them on parchment-lined sheets about 1 inch apart.

Bake: Bake 9–12 minutes, depending on size. Edges should look set and barely golden. Let cookies rest on the sheet for 5 minutes, then cool completely on racks.

Make the royal icing: In a bowl, mix powdered sugar and meringue powder. Add 6 tablespoons water and the extract, then beat on medium until thick and glossy, 2–3 minutes. Add water 1 teaspoon at a time until it reaches a piping consistency (about like toothpaste).

Divide and color: Split icing into bowls. Color with gel food coloring, a drop at a time. Cover each bowl with plastic wrap touching the surface to prevent crusting.

Adjust consistencies: Outline icing: Keep a small portion thick for clean edges.

Flood icing: Thinning with water to a honey-like flow that settles in 10–15 seconds. Add water a few drops at a time.

Decorate: Pipe outlines with thick icing and let them set for a few minutes. Fill the centers with flood icing, using a toothpick to nudge icing into corners and pop air bubbles.

Dry: Let cookies dry uncovered at room temperature until the surface is set, 6–8 hours or overnight. For layered details, dry the base for at least 1–2 hours before adding more decoration.